KKR Investor Presentation – August 2026

Please welcome partner, head of investor relations, Craig Larson.

Good morning, everybody. My name is Craig Larson. I'm head of investor relations, a partner of the firm. Thank you, everybody, for joining us. Everybody in the room here, a special thank you to all of our out-of-town guests who come to New York to join us in person. And then welcome everybody who's joining us globally through the live webcast. Now, before we begin in earnest, I do get to first review our legal disclosure page here. So our presentations today will contain forward-looking statements which do not guarantee future events or performance, and actual results may differ materially. We will be referring to non-GAAP measures over the course of the presentations that are reconciled to the most directly comparable GAAP figures. Those are in the presentation and also on our website. and the presentation materials contain other important information about forward-looking statements, non-GAAP measures, and other legal disclosures. And for the further discussion of some of the risks that could affect results, please also refer to the risk factor sections in our 10K, as well as other SEC filings for additional cautionary factors. So we're excited to be here. It's actually been really fun for us preparing for this event because it's given all of us internally the opportunity to look back and reflect on all of the growth and development across KKR. And perhaps even more importantly, it's given all of us the opportunity to look back and think about all of the hard work, all of the business building, and all of the investment that's taken place back into the firm that positions us so well as we think about KKR going forward. Before us here, you see our agenda. You're going to be hearing from many members of our senior team who are here on a global basis, I'm sure you'll gain a very good sense of the enthusiasm that we all have as a team. In terms of the morning sessions, you'll see that that should take us up to right about 11 o'clock, at which point we plan to have a 15-minute break, and that will lead right into a conversation with Henry Kravis and Henry McVeigh. That's one of the sessions I know many of us are most looking forward to. And then four additional items before we begin in earnest. First, please, everybody, save your questions. You'll see at the end we have a separate Q&A session scheduled with Joe and Scott. Secondly, as it relates to lunch, everybody here in the room, we're hoping you'll be able to join us for lunch. A lunch is going to be held in the room that's right behind us here, behind the glass doors. You're going to see a whole series of tables. There'll be senior KKR folks at each of those tables, and we've sprinkled in the equity research community across those tables hopefully to help spur conversation and dialogue. Third, we do have a gift for everybody is a small thank you for attending. You see on this page a picture of the EDGE observation deck. The EDGE is 100 floors above us at 30 Hudson Yards. The EDGE is actually investment in our credit business in partnership with our real estate franchise. So we do have a gift certificate for everybody that includes an annual pass to go to the EDGE as well as for those of you who are a little more adventurous, tickets for what is called City Climb. Again, for those of you who are more adventurous. So at the end of lunch, please go downstairs and you'll receive that gift certificate at the check-in desk where you registered this morning. And then finally, to hopefully bring things, make things a little more engaging, we have asked everybody for a snippet of their favorite song. So for those music aficionados in the room, we have some walk-up music for all of our presenters for you to enjoy as we think more broadly about an area for us like music publishing we do think of music publishing as an example of an area honestly that five or six years ago was probably not thought of as being a mainstream opportunity for our credit franchise it's actually been a really interesting area for our credit business and it's just one example of how our opportunity set as a firm has continued to expand And that's another theme that you're going to hear over the course of the day. Now, before Scott and Joe come on stage, Scott and Joe have a presentation that's focused very much on the go forward. We thought it made sense for me to level set for a few slides to help review how we got to where we are today. And as I mentioned, you've seen a lot of growth across KKR. A lot of that growth really began on the heels of the global financial crisis. And that happened to correspond to when KKR was first listed on the New York Stock Exchange. in the middle of 2010. So if you go back in time and look to where KKR was in 2010, we had 13 offices. If you look at where we are today, we have 25 offices. We've gone global. It's interesting looking at that footprint. Only six of those 25 offices for us are in the United States. And if you include the incremental nine offices from Global Atlantic, we've gone from 13 to 33 offices over this time frame alongside that global expansion you've seen of course a meaningful expansion in terms of our products and strategies so this was where we were in 2010 we had four investing businesses a very private equity centric group of business lines and if you compare that to where we are today we are in over 40 businesses and strategies meaningfully more diversified by strategy up and down the capital structure, again, on a global basis. Alongside of that, of course, you've seen a meaningful investment in our people. And over the course of the presentations, you're going to hear all of our team members talk about the investments that we've made in all of our investment teams. In addition to that, the investments we've made, we've also meaningfully expanded our toolkit, so a handful of areas across KKR that allow us to be better investors, that allow us to be better partners to our corporate clients. And of course, we've welcomed 1,550 employees from Global Atlantic at the same time. Now, everybody in this room, everybody's in the results business. At KKR, we have a 48-year track record of delivering and differentiated investment performance on behalf of our clients. Here you see gross performance figures across our recent mature funds. I think this picture says a lot by itself. it's also enhanced when you look at performance relative to the corresponding public benchmarks over time and with the growth that we've had in our strategies alongside strong investment performance that allows you to earn the right to scale so that again is something that we've seen in 2010 we had 60 billion of AUM round numbers you look at where we are today we have $550 billion of AUM at $1231, an 18% compound annual growth rate. And I think if you look at the right-hand bar in isolation, we as a firm have become meaningfully more diversified than I think somebody would expect at the outset. And then this is actually one of my favorite slides. It shows our management fee profile. Of course, with the growth in AUM, you're going to see a growth in management fees. But this chart also says something that's unique about us and our positioning. So if you think to what I said a moment ago, we have a 48-year track record in our mind. We're the youngest 48-year-old firm you may meet. Because again, if you think of our evolution, we are now in 40 investment strategies. And it takes time. It takes time for these businesses to grow, build, and scale in a way that can really result in that interesting part of the inflection curve. And so if you look at this trajectory for us, we have a wonderful foundation of management fees in a number of wonderfully solid industry-leading businesses. And then we have this layering effect of all of these 40 strategies, which are in the midst of that curve. And again, we think there's a lot of runway from here. You're going to hear more about this going forward. And alongside, of course, of management fee growth, you see growth in a lot of our more bottom-line metrics, fee-related earnings, 7x, what they were in 2010. And our adjusted net income, 5x, where we were in 2010, again, that's recognized. And even last year was a very difficult monetization environment for us. And over this time frame, we believe we've shown real leadership across our industry. We were the first of our peers to convert from a publicly traded partnership through to a C-corp. I expect there are many of you in the room that will remember that event. We think we've shown real leadership in the evolution in terms of financial disclosure and financial measures. we have after a very thoughtful review led by henry kravis in george roberts you also saw a very methodical smooth transition in day-to-day leadership at kkr joe bay and scott nuttle were names co-presidents in 2017 they subsequently were names co-ceos in 2021 at the same time that henry and george were names co-executive chairman at kkr and all along the way we've repurchased two and a half billion of stock at a weighted average purchase price of $27 a share. Now there are a lot of very familiar faces in the room. For those of you who've been alongside of us for all of this journey, you've seen wonderful performance in our stock price. You've seen our share price increase from $10 a share at July 15, 2020, or excuse me, 2010, through to $101 per share as of last Friday. That's a 23% annualized total return, meaningfully ahead of the S&P 500. And as we think of our performance since our last Investor Day, we actually have two thoughts. This first one is actually very important. It's simple, but it's important, because in our view, we have a demonstrated track record of doing and executing on what we tell you we're going to do. So our last Investor Day was in April of 21. That was shortly after we closed on the acquisition of Global Atlantic. And we reviewed with you a number of growth items that gave us the confidence to introduce a whole series of financial metrics and a whole bunch of guidance items. We gave a multi-year fundraising target. We gave guidance on fee-related earnings, earnings per share. Joe reviewed our infrastructure business. He gave an AUM target for our infrastructure platform and related, gave a management fee estimate for our infrastructure platform. In terms of all of those metrics, we met or exceeded all of those, some of those quite meaningfully. And importantly, that growth and development on those initiatives also helps position us as we look forward and build on all that we accomplished. And the second point that you note here is, again, 2010 and that trajectory, when we look relative to where we were in 2021, we've just seen growth continue to accelerate. Again, at that point, at year ends of 2020, we had $250 billion of AUM. Pro forma for Global Atlantic, you've seen our AUM increase from $350 billion to $550 billion of AUM. In this three-year period, again, three years, you've seen meaningful growth. Our management fees more than doubled from $1.4 billion to over $3 billion. Fee-related earnings almost doubled in this three-year period from $1.3 to $2.4 billion. and embedded gains in the firm, which is an important statistic for us as it helps give a sense for the opportunities that we'll have to see earnings growth from here, increased 40% from $9 billion to $12.3 billion, again, during a period of which we all saw meaningful volatility. So in terms of our stock price, again, since this investor day, our stocks increased from $52 per share to $101. We're 2.6x the return of the S&P 500. And the other statistic we find interesting is if you went back to April 21, in a very simple way, just looked at a PE multiple price to after-tax DE, at that point we were trading at 16.2 times forward after-tax DE. If you look at where we are today, we're trading at 16.6 times. So we've seen wonderful growth. We've seen wonderful equity value creation that has not been driven by multiple expansion. And again, this gives us confidence as we think about the go-forward, recognizing both the growth that we think we can deliver looking forward and on top of that the opportunity for our stock in the sector to re-rate over time in particular as we believe over time will be more relevant to some of the larger indices. And so with that I'm very pleased to turn things over to our co-CEOs Scott Nuttall and Joe Bay and I'm first going to turn the stage over to Scott.

Thanks Greg. Welcome everybody. Thanks for joining us today. As you heard from Craig, we've had a lot of growth since we became a public company and since our last Investor Day. Joe and I want to end this presentation with you understanding this. We're just getting started. Despite all the growth, we have a lot of runway ahead of us, and we've only just begun. And we think that's true in the near term and the long term. Let's talk near term first. We expect to raise over $300 billion from 2024 through 2026, called over the next three years. That compares to roughly $270 billion that we raised in the last three years. And given the investment performance we've had, all of the growth that we've seen across the firm and that you're going to hear about today, the growth in Global Atlantic, the opportunity in private wealth, we feel very comfortable with this $300-plus billion number. And let's go through some financial metrics, targets for 2026. We expect fee-related earnings per share to be over $4.50 in 26. That implies a CAGR of about 20%. Our last three-year CAGR has been about 21%, so consistent growth with what we've seen. We're introducing a new target today, which is total operating earnings per share. This is the most recurring portion of our earnings, so this is a new metric for us. So think fee-related earnings, plus insurance, plus strategic holdings, operating income. We expect that to be over $7 per share by 26. And adjusted net income per share, we expect to be in the $7 to $8 range. And that's a CAGR of roughly 30% compared to the $3.42 we posted last year. So we're very comfortable with these numbers, and to be really clear, we have a lot of visibility on all this. This is all coming from what's already happening in the firm and investments in growth we've already made. But it's not just the near term that we're focused on. We're not just focused on the next three years, the next five years. We're focused on years 6 to 15 and beyond. And so we've built KKR to grow EPS for a very long time at very attractive growth rates. As I mentioned last year, $3.42 of adjusted net income per share. We expect that number will be over $15 per share in 10 years or less. And as a reminder, we expect approximately 70% of those earnings to be recurring in nature, that total operating earnings metric I mentioned on the prior slide. So it's not just the near term, it's the midterm and the long term that we're focused on, and we think we've positioned ourselves to be able to make that happen. So that's the punchline on where we're going and why we feel like we're just getting started. But let's talk about why we have such confidence. In the near term, it's very clear. We can already see it and feel it happening in the firm. These businesses are growing. You'll see a number of charts up and to the right today. We've got a lot of momentum across everything that we're seeing in the firm. So the confidence comes from several places. The near term is straightforward. next three to five years is already basically done with investments we've made and what's already happening. Beyond year five, we're positioning ourselves and to be able to grow in a quantum level beyond that. And the confidence comes from several places. First, we're in a high growth industry and we've positioned ourselves where we want to be. So the wind is at our back. Second, we've been incredibly purposeful about building a business model that allows us to grow for the long term. We have three growth engines to drive recurring earnings. They all work together, as you'll hear. And critically, all of this was built to be able to leverage our core strengths as a firm. Investing acumen, capital allocation, and our collaborative culture. When we say purpose-built, we built this model to be able to leverage the culture that we've built at KKR. So all of this gives us a lot of conviction, but it requires execution. And another main source of confidence is our team. We have a highly aligned and motivated team. As a reminder, people at KKR own over 30% of the stock. Let's talk about the team a bit. As you know, Henry, George, and Jerry Kohlberg founded the firm 48 years ago. Joe and I joined about 20 years in. So the four of us have been working together for the last 28 years. But one of the best things about today is you're going to get to see roughly 15 other members of our management team. This is a team that's a great combination of experience and runway. If you look at our heads of investing and distribution across the firm, average 15 years with KKR. But at the same time, most of the team is in their 40s and early 50s. We have immense confidence in this team and the people in the firm. And this is the team that wants to build KKR together for the next 10 to 20 years. So the point on runway, we expect to be together for a long time. But you need both great people and a great culture to drive the scale outcomes that we're talking about driving. You can see the left-hand side of this chart. These are the seven pillars of KKR's culture. This is the culture Henry and George put in place 48 years ago. We've kept this basic DNA in the firm. It is the DNA of KKR. It's what drives the place. We've been able to retain it as we've gone global and multi-asset class. It allows us to attract best-in-class talent. And to be clear, we still run KKR as one firm. One P&L, one compensation pool. It's a we, not I place. Everybody helps each other. Relationships travel, ideas travel, lessons learn travel. It's a critical part of how we generate alpha. That allows us to drive collaboration, and we can do more with fewer people across the Ideas don't just travel, people do. So people move to different parts of the firm, different geographies to start businesses and build new parts of the firm over time. It allows us to innovate, and as you'll hear, it allows us to maximize the impact of our The bottom line is that our culture really facilitates our strategy and vision. It's the critical enabler of KKR and the model we're going to talk about today. So now we want to go a bit deeper on three sources of our confidence, starting with our industry and markets.

Thank you, Scott, and thank you all for being here with us this morning. So let me start giving you a little bit of context about the industry. You know, we're really blessed to be operating in what's fundamentally a high-growth industry where we're focused on taking leadership positions in the segments of the market that we think have the greatest growth potential not only over the next five years, but 10 to 20 years. As all of you know, the alternative asset management industry has been growing at a very healthy double-digit rate, and it's $15 trillion in size today. And we expect that growth to continue into the future, roughly $24 trillion by 2028. And that's because there's a lot of very interesting secular and macro tailwinds driving this growth. What Scott and I want to focus on today are four areas where we are purposefully building leadership positions, trying to create a competitive moat around our business in these particular areas. Let me start with Asia. As all of you know, the Asia-Pacific region today is one of the most dynamic parts of the world. Already the largest economic block globally, representing around 60% of global GDP growth. And what's interesting for the alt space, it is also the geography where alts are the least penetrated. 9% relative to GDP in Asia versus 26% in the U.S. and 16% in Europe. And that creates enormous opportunity for us across private equity, real estate, infrastructure, and private credit. This is a part of the world where you have 820 million millennials. 12 times the number that we have here in the United States. It's a population of 2.2 billion people with a rising middle class, very healthy urbanization trends, growing demand for value-added services and goods. All a great backdrop for us to invest behind. We've seen the growth in our own business. We started our Asia business back in 2005, so we've been at it for almost two decades now. Our business has grown in the last five years alone from $18 billion of AUM to $65 billion of AUM. So we're the largest private equity player in Asia today. We're the largest infrastructure player today. And we have very rapidly growing real estate and credit platforms in the region. Our scale is unmatched in this part of the world. We have 570 executives on the ground across nine regional offices. So we're a highly localized business in this marketplace. and we have $40 billion invested since we started. And our success in the region has been well recognized by our peers. This past year in 2023, we won for the eighth consecutive year large cap manager in Asia. Within the Asia context, there is a really exciting opportunity that is emerging where, again, we have been building a position to really capture this going forward, and that's Japan. Obviously, an enormous economy, fourth largest economy in the world, Second largest savings market in the world in terms of life and annuity products. Third largest real estate market in the world. And this is a market where we have true leadership. Almost 40% of our capital in Asia is invested in Japan. And when you think about the opportunities for us, just take private equity. We've generated more alpha in this market than many other places. For a lot of reasons that probably aren't obvious, it's low valuations, big conglomerate structures with a lot of non-core businesses, massive room for operational improvement in these companies when we buy them, and a very low cost of capital. And that 9% private equity penetration in Asia is even lower in the Japanese market today. I have two of my partners in town today, Gaurav Trahan and David Luboff, who co-head our Asia business, who are going to share more of this story with you later today. We also have Alan Levine, the CEO of Global Atlantic, today, we'll talk about the emerging opportunity we see in Japan for insurance. The second megatrend that we've been building an incredible franchise behind is the explosive growth in the need for infrastructure investment globally. It's estimated that $100 trillion needs to be invested between now and 2040. And that's for a lot of different fundamental macro drivers. As the global economy grows, especially in areas like Asia in the emerging markets, there's going to be a tremendous need for traditional infrastructure. You think about transportation, roads, bridges, utilities, industrial infrastructure, and social infrastructure like hospitals. This is a growth market globally. But what's new today are two new trends, energy transition and decarbonization. If the world is to meet its net-zero emission targets by 2050, we are going to collectively need to invest $7 trillion a year between now and 2050 to support the energy transition. Think about renewables, carbon capture, electrification. These are all major themes within our infrastructure business. And third, the digitalization of the world, computing power, digital connectivity, AI. It's driving an incredible opportunity set for us in terms of areas like data centers, fiber, and towers. So when you think about these mega trends and how that's impacting our business, you just have to look at the last five or six years alone. Our infrastructure business globally has scaled organically from $13 billion in 2018 to $59 billion today. It's our flagship global infraproduct. It's our recent leadership in Asia in infrastructure, our core infrastructure business, and most recently our climate fund that we're raising for the first time. And again, our platform globally in infrastructure is well-recognized for its leadership and and its leadership in the most important areas, in Asia, in energy transition, and digital transformation. Scott, back over to you. Great.

The third mega-theme we want to talk about really is back to the comment I made about having a lot of wind at our back. It's quite literally demographics. This chart shows you people aged 65 and up around the world. It's expected to double between now and 2050. But look at the right-hand side of the chart. This is just U.S. pensioners' data. The beginning of this chart is about when KKR was founded. We've been around since 1976. You can see at that time roughly 40 million pensioners in the United States. At that time, 75% of them were in defined benefit plans. You can see on the chart, it's grown to 100 million from the 40 million. The 75% has dropped to 12% over that period of time. The combination of the left-hand and right-hand sides of this chart are incredibly powerful for our business. We expect this to continue. This drives both our insurance and our private wealth businesses. So let's start with insurance. This is annuity issuance in the U.S. in 2020. As a reminder, we announced the Global Atlantic acquisition in summer of 2020, so it gives you a sense of where we were. This is where we were last year. Individuals managing more of their own retirement wealth, investing more in annuities in a higher-rate environment. We think this opportunity is immense in the United States, but as you'll hear and Joe mentioned, it's significant in places like Japan as well, where we see a lot of growth. But it's not just in insurance. This private wealth opportunity that we've talked about for a while is also benefiting meaningfully from this theme. Here's some data. Here's how we look at it internally. If you look at global wealth, so combine institutional and individuals, you can see it's roughly $337 trillion in 2022. And roughly 60% of that is in the hands of individuals. Estimates are that today, or in 22 anyway, 2% of that was in private wealth alts. So call that $4 trillion. dollars now by 2027 the 337 trillion is expected to grow by about a hundred trillion dollars in global wealth and the two percent is expected to go to six percent that means the four becomes 15 trillion said simply it's an 11 trillion dollar growth opportunity for alternatives and if you think back to the chart that joe showed before all of alts today is roughly 15 trillion So this is a significant opportunity. We expect a significant portion of the share of that $11 trillion to go to scale players with brand and product and the team to be able to get after it. And we think we're really well positioned to be a winner here. And we've built multiple ways to benefit as this theme plays out. Global Atlantic on the life and annuity side, K-Series, that's the term we use for our private wealth suite. So the four main product areas of KKR, each in this private wealth evergreen format we have a direct team that calls on family office and ultra high net worth and we've been focused on ease of access traditional funds perpetual funds co-invest basically making it easy for people to invest with us individually around the world and across our product set so a lot of ways to grow around this theme but let me give you a quick update on our case series this is that private wealth suite i mentioned it's early days a bunch these products we launched just last year we're coming up on the first anniversary of our private wealth launch we wanted to share the most recent data so you can see end of 22 2.3 billion last year we raised about four billion dollars and think of that as getting on more platforms launching private equity and infrastructure just getting going in different parts of the world if you look at what we've done year to date 2.8 billion dollars so to be clear that includes the first quarter and the April 1 subscription date but we're seeing the momentum pick up so the 2.3 has gone to about nine billion dollars in a very short period of time and we're seeing increased momentum and critically the thesis that I laid out that we're really well positioned to win is playing out in the market the brand matters 48 years of experience matters as is the fact we've invested a lot in product and team and we're across multiple different asset classes so we're really well positioned to win here against that 11 trillion dollar opportunity. The fourth mega theme we want to hit on is that the provision of global credit has changed since the financial crisis. You're going to hear later from my partner Chris Sheldon who runs our credit business about this in more detail. So I'm going to hit this lightly. But a lot's been written about the fact that there's been a structural shift in some parts of credit away from the traditional banking model. But it's created a massive opportunity for firms like ours. There's a desire for investors to have more risk-adjusted spread. Issuers want to have more certainty of execution. They want tailored terms. What that's meant for us is a meaningful change in the opportunity that we have. Global credit market's a $40 trillion market and growing very rapidly. We've listed on the right-hand side a lot of the places that we participate, but let's just pick one, asset-based finance. These areas are very, very large. This is a $5 trillion market today. It is larger than the direct lending market, leverage loan, and high-yield markets combined. It's expected to go to $8 trillion by 2027. Significant growth opportunity and very few scale players in this space, of which we're one. But I could give examples like that for each of the line items on the right. We're seeing an immense opportunity here. And what that's meant for us is a step function change in what our credit business can be in partnership with Global Atlantic. And just share some charts. So this is our total credit AUM, up three times in less than four years. Leverage credit, three times. Direct lending, two times. Asset-based finance, eight times. Real estate credit, ten times. so this theme is driving a lot of growth across our credit platforms at kkr both corporate and real estate and it's made us a better partner to third-party insurers so this is what's happened with our third-party insurance aum it's also doubled over this less than four-year period and with global atlantic we're extraordinarily well positioned to keep winning here and keep seeing a lot of growth now we could have talked about 10 more themes we hit four but we have a lot of these themes globally that are benefiting us and so hopefully it gives you a sense for where that first pillar of our confidence comes from but let's pivot to our second big course source of confidence which is our business model as i mentioned the next three to five years are already taken care of from the growth we already see inside the firm investments we've already made But what we're focused on is not just the next five years, we're focused on the next 20. So we've been incredibly purposeful about building our business model. And so we want to share a little bit of background about how we got to the model that we're going to talk to you about today. So as you've seen, we've grown meaningfully. AUM has grown a lot. Our market cap has gone from 7 billion to 90. And we think a lot of that growth in our value has come from our asset management business. Growing AUM, diversifying the firm. But we've spent a lot of time on the fact that our job is quite different from here. We believe we're going to have a lot of growth in asset management, but we're going to need other ways to grow to be able to keep compounding at the level that we like, and that's what we've been putting in place for the last many years. We talk a lot about the firm, how are we going to double again, and then double again, and as you saw, a young management team ideally be able to work together and double again. And so we've looked at what we can learn from others in terms of how they've grown from size like ours today. So it's just some interesting data. I want to tell you a little bit of what we've been looking at inside the firm. There's roughly 4,900 public companies across the New York Stock Exchange and NASDAQ. 4,550 of them, give or take, have a market cap less than $25 billion. dollars roughly 360 have a market cap more than 25 billion dollars this is where we are roughly 90 billion dollars this is where we want to go 200 plus so we've been studying what can we learn from companies that get above a certain size that we can apply to our business as we think out beyond the next five plus years and we have a few observations to share with you Once companies, especially financial services companies, get to $50 billion market cap, their stock performance suffers. Investor returns become more anemic. Their growth slows. And it's not just that. There are risks to scaling, right? Because you get incented to get into more businesses, maybe those further from your core competency. You add a lot of people. When you add a lot of people, you get siloed. People start working not for the overall firm, but maybe for the group they're in. risk management suffers and we've all seen what happens on the back of that and that's part of the reason that you've seen returns become anemic but there are firms that have managed to grow and compound into the hundreds of billions of market cap and there are things you can learn from them you can see it on the slide there's an ability to permanently own and compound earnings a lot of them been able to do that they have recurring revenue and high market share businesses their good organic and inorganic growth, and critically, they're great at capital allocation. And so we've been looking at what we can learn from those companies, and those are some of the things that we've learned. And the answer for us in terms of how do we get this right is this model on the slide. It's been intentionally created so that we can scale our market cap into the hundreds of billions of dollars and keep growing at very attractive annual growth rates and critically keep our culture while we do all that. And so we're going to talk a lot today about these three growth engines. And what you'll hear is they all work together. They feed each other. They feed off each other. And this model gives us a lot of conviction in scaling our net income to that $15 plus per share we mentioned earlier. And part of the reason that we did this is we wanted to make sure we had a bigger addressable market to go after to use our capability set. So 2018 Investor Day, we might have talked about alternatives as a $10 trillion market. Today, that's $15 trillion, give or take. If it was just that as our addressable market, the ability to compound into hundreds of billions would be much more difficult. But with adding core and core plus real estate strategies and infrastructure strategies, we've more than doubled that addressable market. With Global Atlantic, we've added this $40 trillion corporate credit opportunity that has significantly expanded what we can do. And with strategic holdings, we think we're pretty unconstrained. So when you put all that together, we have a dramatically expanded total addressable market for KKR. And we've built this model that I mentioned to be able to get after that addressable market and scale without a lot of constraints with very few people at KKR relative to the impact that we can have. So what you're going to hear over the course of the day-to-day is what we expect from these three growth engines. We've got multiple paths in asset management to surpass a trillion dollars in the next five years. We believe despite all the growth, we can double Global Atlantic again. And strategic holdings, we expect more than a billion dollars of annual operating earnings by 2030. So that's why you're going to hear from Joe and me for a bit now. We're going to pivot to each of these engines. And why are we so comfortable with the words on that slide?

So let me start with asset management. This is the segment of our business that you all in this room probably know the best. It's what KKR has been doing for nearly five decades. And our founders, Henry Kravis and George Roberts, were truly pioneers in this industry, building the private equity industry in the 60s and 70s. We've obviously expanded and diversified our investment platform meaningfully since then. But very few firms out there that have this track record and this level of experience investing in the alt space. We are truly a global firm today, and we manage a little over $550 billion. So in the last 15 years alone, when you just focus on asset management, we've seen significant scaling of our business. From around $62 billion back in 2010 to $553 billion today, roughly an 18% CAGR in this segment. That growth has come obviously from geographic diversification as well as product diversification. So if you look at that $553 billion today, it's well diversified across different segments of the alts where we're working to be a top three player in everything we do. It really takes four things in our minds to be a winner in the alt space as an asset manager. It all starts and ends with team and human capital. Scott's talked a lot about that already this morning. We are blessed to have a team of 2,700 people at KKR across 25 different offices, And with the addition of Global Atlantic, another 1,500 executives joining us. It also takes incredibly distinctive and unique origination capabilities to grow a platform like this. Over the last 50 years, we've built a lot of industry specialization, a lot of localization in different markets around the world, incredible networks of relationships in different industries with CEOs, with management teams, with boards, to make sure we are a partner of choice, a trusted partner, when they have something important to do, either transactionally or from a financing standpoint. We've complemented our internal capabilities, oops, can we go back one slide, with a number of external platforms. We'll give you two examples. So in the asset-based finance space and in real estate, we have 35 bespoke platforms around origination and servicing as you think about the different types of credit and the different types of real estate that we're seeking to pursue. The third thing you really need to have in the asset management industry is a differentiated playbook on how you create value once you make these investments. Many of these investments are very long-term, three, five, seven, ten years in time. And our job is not just to deploy capital, but to create value in these businesses and investments consistently once we are the owner or the investor. And over the last 20 years, we've had to build different capabilities to make sure we maintain that competitive edge. I'll just touch on a couple here. You're going to hear a lot more about this from my partners during the course of the morning. KCARE Global Institute is run by my partner, General David Petraeus, and his team advises each of our industry teams, our deal teams, and country teams around geopolitical risk. That is an incredibly important skill set and perspective to have if you're a global investor today. It's not just U.S.-China relationships, but government risk, trade risk, anywhere in the world. A highly integrated part of the firm today. KKR Capstone is a business and a capability we started building 20 years ago. This is our in-house operations team, over 100 executives that work hand-in-glove with our management teams and our deal teams around operational value creation in their companies. Sourcing, tech implementation, sales and marketing effectiveness. Again, you're going to hear a lot about that during the course of the day. And then Adam Smith, my partner, is here to talk about KKR Capital Markets, a business we started building 15 years ago. to really source the most efficient capital for our company's debt and equity. So in tough financing markets, we still have that edge that we can get transactions done, finance them flexibly with the most attractive cost of capital. And it's not just for today KKR transactions, but it's for third-party transactions. And fourth, you need incredibly strong distribution capabilities to grow a business like asset management. We've made an outsized investment recently in this area. In the last five years, we have tripled our headcount in our distribution platform to nearly 300 executives at KKR. That is both in the institutional space as well as in the private wealth space more recently. So as we enter this super cycle of fundraising, which I'll talk about in a little bit, we are a better position than ever with the right resources, the right coverage across both the institutional and the private wealth sectors. You know, Craig Larson stole this slide from me early this morning. It's one of my favorite slides. When you put those four pieces together, this is the result. You generate attractive, consistent alpha and performance for your partners. And that's particularly important relative to the public benchmarks that we get measured. And with performance, it gives you the right to scale. It gives you the right to continue growing. If you look at what we've done in the last three to four years, since 2020, 2020, our private equity business has doubled in size organically. Our infrastructure platform has tripled in size. Our credit business has tripled in size. And our real estate business, the youngest of our platforms, has grown 5x since 2020. But I don't want to confuse people. We're not in the business of asset gathering. That's not what we do. We only want to compete as KKR in segments with large-end markets where we legitimately have the conviction and the right to win and be a top three player in that segment. There are plenty of areas within the alts industry that we do not participate in today because it does not fit these criteria. And to be a top three player, it takes time. This is not something you do overnight. In our experience, it takes 10-plus years to truly scale a business and get the financial benefits of that scale. So let me walk you through a couple of examples. Infrastructure is a great case study for us. It's a business we started to build around 12, 13 years ago from a pretty low base. As you can see, in 2011, we had around $2 billion of AUM. It was a first-time fund. We were building the team. It was primarily a U.S. and European business at that time with a $1 billion fund. Over time, as we've invested capital well, returned capital to our investors, we earned the right to raise Fund 2, which was $3 billion in size, then Fund 3, which was even bigger, and Fund 4. We also earned the right to build adjacent strategies, our Asia infrastructure business, our core infrastructure business, and most recently, climate. So, infrastructure has gone from $2 billion of AUM back in 2011 to $59 billion of AUM today. But that scaling, that inflection point, was really around years 9, 10, 11. You can see a very similar fact pattern with credit. A business, again, in 2004, we were just $1 billion in AUM versus close to $220 billion today. In the last three years, we clearly had the benefit of the Global Atlantic acquisition, giving us a much bigger presence in the marketplace, but you could see we've also diversified the products that we're offering across leverage credit, asset-based finance, direct lending, But a meaningful scaling opportunity over the long term. In real estate, we're just getting started on this journey, a little over the 10-year anniversary but you're seeing the benefits of scale kick into our real estate business this business today is roughly 50 equity and 50 debt and even in private equity the business that we have been in for nearly five decades we have doubled the size of this business organically in the last five years it's scaling our flagship products it's incubating and growing newer growth equity funds that are now into fund two format. It's launching our first-time mid-market fund here in the United States and building the largest core private equity business in the world. So when you think about KKR, one way to think about our asset management business is we've been very busy over the last 10 to 15 years setting up these platforms. And these strategies are at different stages of development. Some are early stage in fund one, Some are developing, moving from Fund 1 to Fund 2. Some are maturing from Fund 2 to Fund 3. And ultimately, you reach that escape velocity and hit scale. So we have over 40 strategies in the asset management space at KKR. Only six of those strategies today have reached the scale. So what we get excited about is not what we accomplished over the last five years, but what we think we can accomplish organically in asset management over the next five to ten years. Only 50% of our AUM today has hit that scale, and 80% of our strategies are yet to hit that scale point. So we have a lot of line of sight to growth. In the next 12 to 18 months, we are going to have 30 different strategies at KKR in the market, raising capital, including many of our flagship funds, U.S. private equity, and global infrastructure, which is why we have so much confidence when we say we know we can surpass a trillion-dollar AUM mark in the next five years. In many ways, the next five years is going to be a lot easier for us to double than the prior five years. When we're building these new platforms, when we're hiring teams and trying to scale the business from early stage to developing to mature, we've got a lot of visibility here and a lot of confidence we can get to this number. Thank you.

Great. Let's flip to insurance. So we announced the Global Atlantic acquisition in the summer of 2020. At that time, GA had $72 billion of invested assets. This is what's happened since. Assets have grown by roughly $100 billion, just shy of $100 billion, or at a 28% CAGR over that period of time. and that's really happened and candidly it's been faster than we expected because of this symbiotic relationship between KKR and Global Atlantic. It creates a virtuous growth cycle and the way this works is KKR's investment origination has allowed GA to grow faster. So if you look at the left-hand side of the slide you can see 2018 to 2020. So before we showed up Global Atlantic was originating 17 billion dollars or so a year. Last three years 36. so a double. But at the same time, GA growth has scaled KKR investing businesses, multiple of them. This is just direct lending, asset-based finance, and real estate credit. You can see first quarter of 2020, right before we announced the GA deal, $28 billion across the three. It's now $122 billion. So back to this symbiotic relationship, this virtuous growth cycle, it is showing up at scale in our numbers but the multiplier effect we get from ga is really important to understand i mentioned that our businesses our business model they feed each other and they feed off each other this is a great example of that so when ga grows multiple things happen we get more insurance operating earnings that shows up in that toe metric we mentioned but we also get more fee related earnings because our management fee goes up because we're managing the assets for ga but But it's not just that. We think insurance is emerging as a third-party asset class. So when we do these bigger block transactions at Global Atlantic, we'll often have third-parties alongside. We have created a fund complex called IV. Think of that as a third-party fund, like any other KKR fund, that pays us fee and carry. We believe that will continue to scale meaningfully. We're on IV2. We're going to be raising IV3 here before too long. You will continue to see that grow. So when we've done a bunch of these block deals recently, 75% of the capital is coming from third parties, including Ivy. So it shows up in our asset management business through Ivy and through the FRE from the management fees. But it's not just that. We have more deal flow. That's allowed us to scale third-party capital faster, especially in areas like asset-based finance. And we think there's a very meaningful capital markets transaction opportunity here in terms of the fees that we can generate together with GA. So the multiplier effect is very meaningful for us. And all of this increases the stability, visibility, scale, and diversification of our earnings and gives us a lot of the confidence you're hearing in our voices today. But part of the reason we're so confident about the go-forward is everything that I just talked about, we did with us owning 63% of Global Atlantic. As of January 2nd this year, we own 100%. So in our first few years together, we found several ways to grow together that we couldn't get after with third-party clients alongside. So at 100%, we're able to get after those opportunities, and they're meaningful. We think there's more that we can be doing across the rest of KKR's investing businesses. Infrastructure is just one good example. Distribution. Think Global Atlantic's Salesforce selling KKR's private wealth products. KKR's Salesforce helping to scale IV faster. Capital markets, we think, is a several hundred million dollars a year opportunity in fees for our KCM business. And then Asia and Europe. GA historically, largely U.S., we think there's a real opportunity to take GA truly global and be consistent with KKR's footprint. And that's why we have such strong conviction that despite the roughly $100 billion of growth, we can double GA again from here. Let me pass it back to Joe to hit strategic holdings.

Thanks. We'll finish our segment this morning talking about strategic holdings, and then I'll wrap up. So many of you know strategic holdings is our newest segment. We introduced this segment last November on the earnings call to really talk about a business that we've been incubating for the last seven to eight years. Before I jump into the details, let me just share one high-level observation. So when you look at the market cap and the valuation of all publicly listed asset managers, both traditional asset managers and the alt space, that's roughly $875 billion today. When you look at the market cap of Berkshire Hathaway today, it's a little over $900 billion. You know, when Scott and I joined KKR back in 1996, the Berkshire Hathaway market cap was $41 billion. So over 28 years, they've compounded around 12% and grown their business to obviously a tremendous size. So there's a real learning in here. The learning is about the power of long-duration ownership of great businesses. The learning is about the power of compounding. And the learning is about the power of smart strategic capital allocation. And when you cut through it all, that's what we're trying to build in our strategic holdings segment today. So what is strategic holdings? What we have in strategic holdings today is our core private equity business, the equity interests that are directly owned by KKR. We're looking to build a portfolio of great businesses globally that we expect to hold long duration, 10, 15, 20 years. Businesses with great management teams, defensive businesses with great cash flows and margins. Businesses that have real competitiveness in the sectors in which they operate, and businesses that we control. Today, we have a portfolio of 19 companies that we've assembled and invested behind over the last eight years. Some great businesses like 1-800-CONTACTS, ERM, the largest environmental consulting firm in the world, called USI, one of the best brokerage firms in the insurance segment. And this portfolio is very well diversified within the sectors at KKR that our private equity teams have great industry expertise and thematic investment strategies. So when you look at our look-through ownership, again, on average we own 20% directly as KKR of these companies. The like-for-like growth in revenues has delivered exactly what we were hoping for, consistent, durable growth on the top line, 16% since we started the strategy, roughly $3.3 billion on a look-through basis. And on an EBITDA basis, similarly, 16% compounded annual like-for-like growth in the profitabilities of these companies. Our look-through ownership is around $800 million today. And the consistency of earnings, I think, is particularly interesting when you think about the volatility we've just lived through in the last three or four years this is through covid this is through an extreme macro cycle with inflation and interest rates these businesses are resilient they're durable defensive and growing so why did we introduce this segment just last november when you think about how we built this portfolio they started off as control buyouts they're growing at a nice clip but they're also deleveraging their balance sheets materially year over year. So we have companies eight years old in the portfolio. We have companies just one year old in the portfolio. The more mature portfolios have obviously delevered their balance sheet pretty materially. And these companies are starting to pay after-tax dividends to shareholders, including KKR, for our direct ownership stake. So last year, in 2023, this was a relatively de minimis number, right? We generated 15 million in dividends last year on an after-tax basis out of this portfolio. By 2026, we think that's going to grow to over 300 million dividends. By 2028, 600 million in dividends. And as Scott mentioned, by 2030, line of sight to over a billion dollars annually of operating income from this segment. This is incredibly predictable, recurring cash flows in our strategic holding segment. So how do we think about valuing this part of our business there's one very simple framework i want to walk you through today which we think is actually quite conservative but here we go you take the dividend stream that we talked about 300 doubling to 600 growing to a billion dollars by 2030 and you simply apply the free cash flow yield of the s p 500 of three and a half percent what that would result in is that by 2026, a valuation of $8.6 billion or roughly $10 a share. By 2028, $20 a share, and by 2030, $30 per share. Those are meaningful numbers in the context of roughly $100 per share stock price today for KKR. But we think this framework meaningfully undervalues this segment of our business. And part of it is the implied EV to EBITDA valuation at those same levels would imply that our portfolio is worth somewhere between 10 to 16 times EBITDA over time, a meaningful discount to the S&P 500, which trades at 21 times today. I would argue that this portfolio of 19 companies that we put together is a better portfolio than the broader S&P 500.

More durable, more growth, ability to deliver greater after-tax dividends at a faster rate over time.

So again, we're super excited about this part, this new segment that we've introduced at KKR as a third pillar of our model. So maybe I can wrap up just trying to summarize many of the messages and themes that we talked about today. You know, we really have a lot of excitement, and our entire management team at KKR about the future. We've had a lot of growth historically, and we've planted the seeds and built the platforms for sustainable growth for not only the next five years, for the next 10, 15, 20 years. And asset management, again, a very clear path to getting to a trillion dollars of AUM in the next five years. An ability to double Global Atlantic again. And this newest segment, creating tremendous value for all of us in this room, driving this operating earnings out of strategic holdings to north of a billion dollars by 2030. As we do that, the financial implications are significant. Our after-tax net income, we believe, will be growing from $3.42 last year to north of $15 per share within the next 10 years. And importantly, those three growth engines, totaling up the total operating earnings, will drive 70% of pre-tax earnings. So stable, predictable, growing cash flows. So let me end where we started. The future, we believe, is very bright for KKR over an extended period of time. We're blessed to be in a high-growth industry, and we have leadership positions in the most important growth segments within the alt space today. We've purposefully built this model with these three growth engines to drive compounding of earnings and free cash flow in our business over time. And it is leveraging what we're already very good at, our investing capabilities, capital allocation, and the culture that Scott talked about that really ties all of this together. So thank you again for coming today. We've got a great day ahead for you. And let me turn it now over to my partners, Nate and Pete, who are the global heads of our private equity business. Thank you very much.

Okay, good morning. My name is Pete Stavros. I'm our co-head of global private equity at KKR together with my longtime colleague and good friend, Nate Taylor. Nate and I joined the firm in 2005, in fact, about two weeks from one another. Prior to our current roles as co-heads of global PE, we ran our Americas private equity business together. We'd like to take just about 25 minutes and walk you through our private equity franchise. I'm just going to baseline you on what we've got today, our performance, all of our different funds, our strategy. And we're going to talk importantly about our growth, where we've been and where we think we're headed in private equity. The key takeaways from our perspective are, first of all, we are the most tenured private equity franchise in the world. However, we continue to grow. You saw this from Scott and Joe's slides. Sometimes private equity within our firm can be called the mature business. And Nate and I always scratch our heads at that, and we'll show you some data around how we've continued to grow. And we've grown by scaling everything we've got, and we continue to do that. We've got some newer strategies that are still scaling, and we continue to scale our flagship funds as well. And we've expanded into and continue to expand into synergistic adjacencies. new strategies that make us better investors and are important opportunities in their own right. And this is all enabled, as Scott and Joe said, by performance. Our performance in private equity has been outstanding for decades, through cycles, across geographies and across product strategies. And our strategy is pretty simple. It's really based on what Joe and Scott talked about, finding good companies that are fundamentally sound and making them great. That's what we're good at. Then that's at the asset level, so at the level of the individual investment. Then at the portfolio level, we work with Henry McVeigh and the macro team, and we optimize the overall construction of the portfolio. So we figure out how to minimize risk without sacrificing any return. And lastly, I'd note we aspire to be the most globally connected private equity firm in the world, both within our private equity franchise, meaning across geographies and funds, and then how we interface with the firm. And this is not just a culturally aligned, you know, nice thing to do. This delivers better outcomes. The way we operate actually creates value. And we'll give you a bunch of examples of that. So quick snapshot, we've got within global private equity today, $176 billion of assets. We are responsible for more than 230 companies and 850,000 employees. That is a massive responsibility that we take very seriously. Nate's going to talk to you about efforts we've got underway around workforce development and employee engagement and employee ownership and teaching financial literacy and really changing the cultures of our businesses with a human capital orientation. Now, again, despite how long we've been at this and the scale at which we're operating, we are still growing. As Joe said, we've doubled our AUM. This is all organic. So since 2018, we've gone from $81 billion of AUM to $176 billion. And then looking forward, when you think about how many strategies are still scaling, the fact that our flagships are going to go on our next super cycle fundraising effort, core private equity, the K-Series, which was only briefly touched on by Scott and Joe. You'll hear more about it from Elisa. That's our democratized product strategies. There's so much yet to come in private equity. The best years for this business are definitely ahead of us. Before passing it over to Nate, I'm just going to touch on each of our three businesses. So we've got traditional PE, we've got core, and then we've got our growth equity business. Traditional PE, think of this as mainly our flagship regional funds across U.S., Asia, and Europe. You can see in the lower left, we continue to grow even in our flagship strategies. and the growth is not going to be linear because we have a as we say a super cycle of fundraising across our flagships every four or five years and that's when we get our big step ups in AUM and in the lower right again this is all enabled by outstanding performance our performance has been exceptional for decades and our recent performance parallels some of our really early outstanding funds in the 70s and 80s and in the top right we've got a lot of dry powder We'll talk more about this, but one of the mistakes that has been made in private equity in recent years was over-deploying right before rates went up and multiples came down. And we avoided that, thanks in large part to the work we've done with Henry and our macro team. We've got an enormous focus on linearly deploying a fund and removing vintage risk. And that's put us in really good stead, and we'll show you some more data on that. Okay, core PE. I think the only incremental thing I would add to what Joe mentioned is how our culture enabled this. So we've now got $35 billion of AUM. We did not add a single incremental person. That has to do with how we run our firm and how we run private equity as one integrated entity. Joe touched on the performance of our 19 investments. That's going to allow us to continue to grow this franchise. Our culture also has enabled our expansion into adjacencies. it helps us because we can leverage our relationships our toolkits our playbooks all of our resources when you think about capital markets and capstone and our fundraising machine all of these new businesses ride on that infrastructure it's what in large part why these have been so successful again it's enabled by the culture so this page shows you our health care growth franchise our tech growth franchise and impact as joe and scott mentioned we've also just launched a new strategy in the middle market. You can see here we've got 18 billion of AUM and growing and the performance in the top right has been outstanding here again.

So Pete and I are investors just like everybody in this room and we sit through presentations like this and we ask ourselves in particular when we're looking at a company and trying to decide whether or not we want to invest, do they have a recipe for success? Do they have a formula that can produce consistent repeatable results over time. So we think we have exactly that inside of our KKR private equity business. And while it's simple to articulate, it relies on decades of experience and a really collaborative and unique culture. First and foremost, it's about growth. It's about taking this leading franchise that Pete was just talking about and adding to its scale and its scope. Next, it's about performance. It's taking that strong track record and continuing to build upon it through a focus on asset selection, value creation, and portfolio construction disciplines. And then finally, it's about integration. You heard a lot about this from Joe and Scott, but this is fundamental. Collaboration inside of private equity and around the firm. So I'm going to start by double-clicking on the growth portion of this algorithm that we talked about. And again, you heard it from Pete. It's a bit of a sensitive subject for us. But while we may be an almost 50-year-old business, this is still a growth engine for the firm. So on the left-hand side of the page, we're looking at flagship private equity AUM. So flagship, that is our most mature strategy inside of private equity. And over the last eight years, it doubled. So tremendous growth for a mature business. And as you know, it's a great business as well, highly profitable. So a lot of that growth drops to the bottom line. The nice thing is the P&L impact of all these bigger funds is still yet to be fully felt. The management fees obviously immediately step up, but the carry is still largely on the come. And as Pete referenced, we're getting ready to start this cycle all over again as we embark upon our next flagship fundraising super cycle. The other great thing about the flagship strategies is that they've helped spawn new strategies inside of private equity as well. So today we're managing $60 billion of capital from seven strategies that didn't even exist in 2015. So to say that another way, these seven strategies, these new strategies didn't exist in 2015. On a standalone basis would be one of the largest private equity firms in the world. It really speaks to the power of growth inside of this business. And it's been done in a really synergistic way. Most of the leadership of these new strategies came from our flagship private equity strategies. And that's good for two reasons. It keeps our teams motivated, energized, stretch opportunities for them, and it ensures quality as we extend into these new strategies. We're at a really interesting moment with the new strategies. Pete alluded to it, as did Joe and Scott. but we're well past the proof of concept phase with with these strategies so if you look at next generation tech healthcare strategic growth and global impact we've moved on from fund one to fund two with some meaningful scaling and again management fees have stepped up but the carry from those second and third generation funds is still largely on the come pete referenced uh what we're doing in the middle market one of our newest strategies middle market america we're calling it Ascendant. We're right in the middle of fundraising, so we're a little bit limited on what we can say, but Pete and I are really excited about this. We're heartened by the demand we're getting from potential investors, and as importantly, we're really excited by all the opportunity we're finding to deploy this capital. So Ascendant's a great reminder of what we can do and how much growth is available to us inside of private equity. So a brand new strategy, large addressable market a place where we think we have a real right to win and again being done in a highly synergistic way we're leveraging our existing teams our existing intellectual property we're deal sourcing together creating value from playbooks that we've used across the firm we've done that in core private equity we've done that with ascendant you'll hear more about the k-series and how again it continues to rely upon everything that we already do same thing with our single name continuation vehicles all great proof that there's tremendous growth in our private equity business in AUM management fees and carry and that we can do all this in a way that is consistent with the high standards that you've come to expect from us okay so let's talk about performance.

As we've said multiple times, that really enables our growth. So the strategy in private equity, which Henry and George set up many years ago, is taking good companies and making them great. The question Henry still asks us today, we talked about with George yesterday, every time we go to investment community, their question is, what are we going to do with this? Why should we own this? What are we going to make that someone else is not seeing or hasn't already done. And so we've got a whole process for, first of all, how we find these fundamentally solid businesses that are not optimized. So we have an entire process around that. And then we've got an enormous set of resources, which I'll talk about in a second, which helps us identify the improvement opportunity and then get after it. The recipe each time we do this is bespoke, but we tend to look in the same places. So we're looking for opportunities to top grade talent, grow through M&A, take margins up, unlock new vectors for growth, strategically reposition a business. And that kind of menu, Nate and I and our teams pick through each time we're looking at an investment and ask ourselves the Henry and George question of what are we going to do with this? How can we make this something totally different than what exists today? And the way we do that relies on a tremendous number of colleagues around the firm. So we have 600 executives who make our investors more efficient and they help them make better decisions and get better outcomes. Joe briefly touched on KKR Capital Markets. Let me try to bring that to life a little bit for you from an investor perspective. So day to day, our investment team, 20 years ago, they would have to raise all the debt financing, any debt repricing they'd be on the hook for, any dividend recaps. If we went public, they were driving it. Secondary trades, block trades, and on and on and on. First of all, our investors are not world-class at that. We dabble in the capital markets. Our capital markets team, this is what they do. So they get better outcomes. And think of all the work that they're taking off of the plates of our investment teams. We don't have to worry about any of this stuff. It's in the hands of world-class professionals who are going to get better outcomes than we could get. last thing i'll say on this page is we are constantly innovating here we are always adding new resources and finding new ways to make our companies better inside a capstone right now we're building out what we're calling the human capital center of excellence this will be the clearinghouse for best practices around employee engagement teaching financial literacy how to really create an ownership culture not just hand out stock but change the culture of the company and make employees less likely to quit, happier on the job. And Nate's going to talk about what we do there and how it delivers real impact. Okay, it's one thing for us to tell you about all these resources and all these strategies, but the proof is in the pudding. And we've just shared with you here four recent exits. And keep in mind the scale at which we're operating. There just are not that many 6x deals, 7x deals, 10x deals at our scale. Also keep in mind, we are often buying these from professional investors. Some of these businesses have been owned by private equity not once, not twice, but three times before us, and then we go off and make ten times our money. So clearly KKR is doing something different. And it's all about this opportunity and this ability to identify these unloved assets that are not optimized but are fundamentally sound. We are not buying broken businesses. Okay, so that's what we do on the asset, individual asset side. Now, at the portfolio level, again, working with, and this is something Henry McVeigh brought to our firm a number of years ago, which was to figure out how you construct a private equity portfolio and minimize risk. And honestly, having many of us have worked at other private equity firms, there's not a lot of thought at the portfolio level. What bubbles up from the industry groups, people buy. At our firm, we've got a really sophisticated group of brilliant people who are sitting down with all of our strategies and figuring out how to minimize risk without sacrificing any return. And that has to do with lots of things from position sizing, sector diversification, looking inside of a fund for hidden correlations between assets. But this is a key one, this linear deployment concept. What you've got here on the y-axis is the percentage of a fund deployed, and on the x-axis time measured in months so 60 months would be five years and then the straight lines show you four-year and five-year perfect linear pacing and you can see how religiously we follow this of course it's going to bump around a bit but we always want to stay in this range and it's because no one can time the market no one can sit there and say now is the time to invest now is the time to really dive into software or avoid industrials the landscape is littered with people who have tried to make money that way. Henry's model here is, hey, remove vintage risk and then outperform based on the assets you're selecting and what you're doing with them. And that's what we're trying to accomplish here. We have that same mindset around returning capital. Don't try and time the market. No one's that smart. When you've accomplished 80% of what you came to do with a business, as long as the markets are orderly, head for the exits. That's going to hold you in really good stead with your investors because you're going to, you know, continuously return capital. And as you can see here, return more capital than you're taking in. And if we were to show you the years prior to 2017, this has been a very steady stream of returning more than we take in. So what does all this add up to? Our strategy, our resources, it adds up to outstanding performance across cycles, across geographies, across individual strategies. and you can see some of our recent performance again it rivals the 70s and 80s and what the firm was able to accomplish this is not about a couple of brilliant investors this is about a firm with massive massive resources and a globally connected franchise that has figured out how to apply process to investing and deliver repeatable results okay so we've talked about the growth and performance part of this recipe for success, this algorithm, I'm going to wrap up by talking about

the integration piece of it and collaboration and how important that is inside of private equity and around the firm. Again, you heard Pete talk about it, Joe and Scott talk about it. This is fundamental to who we are as a business. So when Pete and I took over U.S. private equity six, seven years ago, this was a big point of emphasis for us. We go to market in U.S. private equity with seven vertical teams. You can see them in the center of this page. And they're great teams, great people, great track records, great resources that they bring to bear. But they were largely operating in silos. They weren't really collaborating as much as they could have. On the left-hand side of the page, you can see five examples of how these teams went to market together. At least two vertical teams sourcing a deal together, executing a deal together creating value in that deal together and these are five examples but to be honest this is pretty much just standard operating procedure inside of America's private equity at this point and rest assured this says a lot easier than it does it takes great people it takes this collaborative culture that we're talking about and it takes years of trial and error to get this right which is exciting because we've invested that time and energy and for us It's a real competitive advantage that we're going to continue relying upon. Specifically, we've taken the same concept of collaboration and extended it across private equity strategies. So on the right-hand side of the page, you can see examples of this. So 123 Dentist is an interesting one. It is an ascendant investment, but it was facilitated by a core investment that we already had in a business called Heartland Dental. And it really is a virtuous circle. here. So Heartland created the proprietary angle to go find this investment for Ascendant. But 123 Dennis is more of an attacker brand. So there's lots that we can learn from that business and port back over to our core portfolio. We're taking the same idea around the globe. So Pete and I have been leaning into this idea of global collaboration, US, Asia and Europe over the last year and have lots of early signs of success. There's going to be big wins from getting our teams even more tightly integrated than they already are. And once again, we believe this is something that our competition is largely not even attempting. So when we get this right, it's going to really distance us even further from the pack. Collaboration within private equity is important to us, but it's also fundamental around the firm. So given the size and scale of our private equity business, there's almost no other part of KKR that private equity doesn't touch. And it really is a virtuous cycle. So Pete, I think, did a nice job talking about KKR Capital Markets. KKR Private Equity had the size and scale to help that business get going. But today, KKR Capital Markets is incredibly important to us in continuing to sustain this leading private equity franchise we have. So one of our our favorite examples or ways of talking about this integration or collaboration around the firm is how we share best practices and specifically how we share best practices with respect to value creation plans. Pete touched on it, but it really is so fundamental and a really important part of differentiation for KKR private equity, this idea of value creation. And there is certainly nothing more differentiated in our value creation playbook than broad-based employee ownership. So my buddy Pete here has been working on this idea for literally most of his adult life. He incubated it inside of our America's Private Equity Industrials portfolio and you can see that on the left-hand side of the page. A bunch of us, myself included, were really impressed with what Pete was doing and intrigued about whether or not we could port it over into other industries. So we invested time and energy to do that. Fast forward to today and, quite frankly, for the last two to three years, every control investment that we're making in America's private equity has a broad-based employee ownership program. We're now extending that globally and, frankly, beyond just private equity. So what exactly is broad-based employee ownership? We have a lot of great content on our KKR website. So for those of you who are interested, I would encourage you to poke around a little bit more here. But for today, we're going to use a case study. So Ingersoll ran was a industrials investment that Pete and our U.S. industrials team made. And like Pete was talking about, this was a solid business, but one that we thought we could make a lot better. Specifically, we thought we could do a lot with the way they engaged with employees. So we rolled out a broad-based employee ownership plan. So what does that mean? It certainly means that all employees participate in the equity value creation journey. But it also means we're investing in measurement, in communication, in engaging with our employees and educating them on how individual actions can affect overall equity value creation. And the results, which you can see on this page, they speak for themselves. So we took employee engagement from a pretty dismal 20th percent to an industry-leading 90 percent. That, in turn, drove quit rate from 20 percent down to less than 3 percent. So to make that tangible, thousands of employees were retained every year that would have otherwise had to have been hired and trained at great expense to the company. That, in turn, drove operational value creation, more than 1,000 basis points of margin expansion during our hold period. That, in turn, drove a great investment, 4.2 times gross multiple of invested capital. So a great outcome for our investors, a great outcome for the management team, and importantly, a great outcome for all 16,000 non-management employees where over $750 million of wealth was created. the great thing is this is not just an isolated example this is our way of doing business today so on the left hand side of the page you can see nine fully exited investments where we had very similar results and 35 active programs in the center of this page by the time this is all said and done we're going to have dozens and dozens of companies and hundreds of thousands of employees where billions of dollars of value is going to be created and the great thing is this is not only the right thing to do not only hugely impactful to the communities that we serve but great business driving great operational outcomes so i'm going to start to wrap us up at this point what pete and i hope you take away from today is that kkr private equity has a unique combination of scale scope and performance that we believe is without peer in the industry through the decades and years, we've developed a winning and proven formula for delivering success. And we believe, as Pete says, the best is yet to come. As we walk off stage, we're going to leave you with a little video reminder of what all this looks like when it comes together. A reminder that great companies can do great things.

A decade ago, KKR's Industrials team had a concept with management where we saw a bonus plan and a small plant in Minnesota that could be so much more. It could be shared ownership, it could be global, and everyone could participate. And that was really the start of this all-employee ownership effort.

So we started talking about whether or not this could extend itself into other verticals. And what we've seen so far is it actually works for all of them. Today we're doing this across our entire portfolio, software companies, e-commerce companies, services companies. The exception to the rule would be where we don't do it. We really believe it can be applicable anywhere.

The scale of this is what's exciting. It could impact millions of people to a meaningful extent.

Well, great. It is fun to be here with you guys today. I have a few things first. We're rolling out some really unique employee benefits.

We are giving the opportunity for every single employee of the organization.

The chance to participate meaningfully in the success of the company. You get to be an owner. And it's your chance to build equity, because you're the ones that make this happen every damn day.

The foundation of the program is around broad-based ownership, where everyone in the company participates in the ownership of the business, has a stake in the outcome.

By essentially giving every employee in the business an opportunity to benefit from that growth in value, we're all rowing in the same direction and we all want the same thing.

When you have shared ownership, you should be able to affect all the different levers in the business. You have less turnover. You have better employees. People don't want to leave. You spend less money hiring and training. It's easier to recruit people, to bring people in. In aggregate, what that should mean is that you just grow the company more quickly.

This is a way for businesses to actually bend the curve on a policy issue that's really frustrated state, local, and federal governments over time. How do you close this gap?

It's the right thing to do. Equity should not be so concentrated at the tops of companies. Business is a team sport. Everyone participates. Everyone deserves to share in the value creation. And by the way, it happens to be smart business. It just so happens to be the case that when you do that, you get better outcomes because you've got happier, more productive employees who are less likely to quit.

Seeing the joy and the happiness that it puts on people's faces to receive cards about how first down payments are being made on homes you know that people are paying off crippling debt that it's really fundamentally changing the way they live i think this is where the passion comes from just being here it brings me peace and that is something that i need we're put on this earth to give back to share i think that's what life is really about you build a culture with kindness first and you know good work ethic and it spreads through everyone i feel like i am valued as a person and an employee i'm just not here because

i'm a hard worker i'm here because i'm a good person i feel so strongly this is going to work because um because i know our people um and they just care i just uh yesterday sorry i'm just a little bit emotional because yesterday um i got to speak with some of our managers about it and you know it's just you see people just crying it's uh it changes it can change their lives and so when you give people the chance to change their lives i think they'll step up please welcome

co-founder chairman and chief executive officer global atlantic alan levine hello everyone it is great to be here with all of you and to have the opportunity to discuss our insurance business I'm Alan Levine, co-founder, chairman, and CEO of Global Atlantic, and I have the unique privilege of having been the only CEO of the business over the past two decades. That includes originally founding the business back in 2004 with my partner at the time, Tim O'Neill, leading the separation of Global Atlantic in 2013, raising money from 1,200 individual shareholders, a 63% ownership transaction with KKR three years ago, and And then most recently, 100% ownership at the end of the year. Given my tenure, I'm in a unique position to talk about our business and the opportunity today. And what I'm incredibly excited about is to talk to you about why I've got such strong conviction that we can double from here. I'm going to cover four themes over the course of my remarks in the next 20 minutes or so. Number one, we already operate a leading insurance business. Two, over the last three years, we've established a very strong track record with KKR. You heard from Scott and Joe already the success that we've had. And clearly, under 100%, we've got even more conviction that we can unlock further value. Third, the markets that we're in are incredibly compelling, meaningful tailwinds. And lastly, given all of these points, we've got multiple ways to grow from here. And if we do all of this well, we execute at a really, really high level, We continue to grow assets, earnings, continue to remain focused on protecting our policyholders, provide an incredible employee experience, and provide more value to more of our clients. All right, let me start with an overview of Global Atlantic. Over the past 20 years, we've quietly and patiently built one of the fastest growing, one of the highest returning insurance businesses. We've done this with an incredibly focused strategy, focusing on lines of business that have strong fundamentals and play to our competitive advantages. These include three themes. The ability to attract and retain the best talent in our industry. Two, a deep expertise from a risk and investment management perspective. And lastly, the ability to build deep client relationships we've done this over multiple cycles and multiple ownership structures including the convergence between asset management and insurance because of our quiet and patient approach investors are often surprised by the size and scale of our business let me share some facts at the bottom of the page over 170 billion dollars in assets under management because of our focused strategy we like KKR want to be top three or top five in every business that we're in. We've achieved that today in the retail fixed annuity business and in our flow and block reinsurance business. Consistent top quartile returns and growth and you can see 25 percent compounding growth from an asset management perspective and over 1.3 billion dollars in earnings. Key to our business is what our policyholders are looking for, it's what our clients are looking for, strong balance sheet, strong capital base, and ratings. We're A-rated across the board. And lastly, as I mentioned, according to everything we do is around risk and investment management. That has gotten even better as a result of our transaction with KKR. We spent a little bit of time talking about our two businesses. Today, we operate in the $4 trillion US life and annuity market. Talk about how we're expanding globally. And we sell products to both individuals and institutions. And we do this leveraging the same approach to risk and asset liability management and the same scalable operating platform. Today we directly and indirectly support over three and a half million policyholders and growing. Let me start with our individual markets business. This is a business run by a gentleman by the name of Rob Arena, one of our two co-presidents. Here what we're trying to do is serve clients in retirement or planning for their retirement, and we provide a range of products that provide income, accumulation, or protection. Those products primarily are fixed in fixed index annuities today. We sell our products through a nationwide sales force of over 200 professionals, and we sell through over 200 banks and broker-dealers, including household names like Wells Fargo, Morgan Stanley, and LPL Financial. Last year, we did over $11 billion. dollars we've been consistently a top five player in this growing space we talk about our institutional markets business which is run by mono serene our other co-president here we cover the top 50 u.s life insurance companies what we do for them is provide customized solutions to enable them to free up capital reduce risk or exit non-core lines of businesses we do those through block flow and pension risk transfer reinsurance transactions. This is a franchise we've been in for 20 years. We've done more transactions with more clients than anyone else in the space. This is a true proprietary business for us. Our most recent transactions with MetLife and Manulife both customized solutions over 10 billion dollars each. Very few firms could have brought what we delivered. Top three player consistently we did over 30 billion dollars of transactions between what was closed and announced at the end of the year. All right, let me spend a few minutes talking about our operating model. Here's what I know. Most people in the room probably find insurance and the idea of investing insurance complicated. And these are currently businesses I have deep respect for those who can operate well. But our business is a little bit different. We have a very straightforward business model that all of the folks at both Global Atlantic and KKR are focused on maximizing. First of all, what do we do? We originate low-cost, predictable liabilities. How do we do this? Through our individual institutional channels, where remember last year we raised over 40 billion dollars across the platform. We match those liabilities with high-quality fixed-income oriented assets originated by KKR and if we do a good job and we can generate a higher yield on the assets then we're paying on the liabilities we can generate a positive net spread we've been doing this consistently now for a very long period of time that gives us the opportunity to generate strong earnings but it also gives us the opportunity to drive capital and that capital then can be used to support future growth and support our clients needs and underlying all of this is our consistent framework around risk and investment management now let me talk a little bit about the kkr transaction and why we're all here today thinking about this four years ago global atlantic clearly recognized a tremendous opportunity to grow with the platform that we had built we were looking for a partner we're looking for a firm that had the same vision culture and values as we did and it also could bring us some very tangible things that included institutional asset management capabilities deep access to capital and all the other benefits that a global financial institution could bring scott mentioned this a little bit in his remarks from an investment collaboration we've clearly seen the benefit in the last three years global atlantic was averaging less than 20 billion dollars a year in production today that's almost 40 billion dollars but as we noted it's not just what global atlantic has been able to get from kkr at the same time we've been able to scale meaningful kkr strategies whether that's in real estate credit that ralph rosenberg will talk about during his remarks or chris sheldon on acid-base finance we've meaningfully scaled these businesses that benefits both kkr and global atlantic as we get to see bigger and better opportunities, ultimately. From a capital-raising perspective, what we've been able to do is truly start to leverage the full scope and scale of KPR's fundraising capabilities. Growing from a team of just five professionals to now having hundreds of team members to help us raise third-party capital. I'll talk about that more as I think about growth opportunities. And then on the international side, we finally were able to put the global in global Atlantic having early success entering transactions in Hong Kong, Singapore, and Japan. Clearly, given our strong track record over the last few years, we felt like there was a lot more we could collectively do together. And that's why, at the end of the year, we announced a transaction for KKR to go from 63% to 100% of Global Atlantic. We really did believe that we had the opportunity in this transaction to provide more value to more clients and at the same time unlock additional value across a number of areas. Let me touch briefly on four of them. First, from an investment perspective, here's one of the things we realized even three years in. We only leveraged about half of KKR's investing capabilities. There's a lot more we could collectively do together in areas like infrastructure but also internationally the other piece is we did believe that we could leverage global atlantic's larger balance sheet to be able to source assets not just for global atlantic but also for our third-party insurance clients leveraging our capital markets business and i know adam smith will touch on that in his remarks from a fundraising perspective we clearly see a lot of opportunity given what we're uh experiencing on the fundamentals the ability to leverage the full suite of KPR capabilities from a fundraising perspective at 100%, we think will drive further growth. From a wealth perspective, what we realized, we're in the wealth space and KKR is in the wealth space. Whether it's KKR selling K-Series products or Global Atlantic selling annuities. It turned out we're in a lot of the same firms. We both cover financial advisors. What are the opportunities as we look to leverage our 200-person sales force, 11 billion dollars a year in sales with what KKR is trying to do. Well, we think from an education, distribution, and potentially product development perspective over time, there's some unique things we have the opportunity to take advantage of that we are truly positioned to do. Here's one thing we're experimenting with right now. We had our entire Salesforce license to sell K-series products. And in one of our largest distribution firms, we're experimenting selling a single K-series product today. We'll see. It's early days. There's clearly upside potential here for our collective firms. And lastly, I mentioned our early wins from an international perspective. With success, Singapore, Hong Kong, Japan, we believe working much more closely and collaborating together, we are uniquely positioned. I will cover that as I talk a little bit more about our growth opportunities. All right, let me turn to fundamentals a little bit. We believe there are incredible tailwinds for what we do across the retirement space and in the industries that we serve today. Start on the chart, the lower left. The population of folks 65 and older continues to grow meaningfully. In the next five years, the tail end of the baby boomer generation will retire. Here's what we know about that cohort. Number one, they are not prepared for retirement. And number two, they can rely less and less on defined benefit plans. Our industry is uniquely positioned to be able to provide the products that this demographic needs. We've already seen success and growth in our markets. Scott mentioned this earlier, going from $120 billion in 2020 in annuity sales to almost $300 billion. This trend continues between our flow reinsurance and our individual markets retail business. Again, Global Atlantic is able to provide capital to these markets. and at the same time where we're seeing strong growth and need public insurance companies are returning capital you can see the majority of capital that these companies have earned has been returned as companies look to go balance sheet light and their stocks have traded below book value and that has created a real demand for capital to give this industry the opportunity not just to support demographic needs but also to help the industry restructure as well and as a result 26 billion dollars of capital has entered the business in the last four years and what that has led to is over 300 billion dollars in reinsurance transactions 300 billion dollars of assets transferring from traditional insurance companies as they look to be risk exit non-cortilized business and ultimately free up capital all right let me shift to growth one of the things that i opened up with as we see a clear path to double from here so let me talk a little about the conviction that we've got we entered into the kkr transaction originally we stood at 72 billion dollars that was the time that deal was ultimately announced and when we closed 98 billion today we're north of 170 billion dollars i've always thought about growth the same way through a strategic lens lens, and then a highly methodical lens. Let me spend a little bit of time on how we segment our opportunities. Think about things first from a franchise perspective. These are businesses we're already top three or top five in. We already have a leading position. Think about that as our block business or our individual markets annuity business. Second piece is in our maturing businesses. These are businesses that we've entered recently over the last couple of years, but we believe we have the ability to get to top three or top five. And lastly, emerging opportunities. These are the newest markets that we've entered where we believe strong fundamentals and our industry positioning will give us potential opportunities for growth. And then lastly, underlying all of this, if we do all of this really well and we can continue to drive third-party fundraising, I'll talk a little bit about how we're thinking about insurance as an asset class, we can see a clear path to double from where we are. Let me walk through these individually. Let me start with our franchise and maturing businesses. Start with the table on the left. We view these businesses as markets that we compete in every single day. We are selling to our clients, driving growth, and in markets. We've already had meaningful success here. Compound annual growth rate of 32%. A lot of this driven by our retail annuity business and our flow reinsurance business. We believe we can continue this growth trajectory because we can continue to add new distribution partners, add new products, and increase our market share with our existing clients. Give me one metric that I am incredibly focused on here. The gap between Global Atlantic and our number one competitor just in the retail annuity space alone is $20 billion a year. With a high level of conviction between now and the next time we're all together for Investor Day, we will have closed that gap. I'm going to let me talk about the block business. A lot of people view this business as opportunistic or episodic in some ways, but we have a totally different model. We've been at this for 20 years. We've entered into more transactions with more clients. We've got the deepest relationships, and this is a highly customized business. And as a result, we've been able to average $15 billion a year in block transactions. So what we do is truly unique from what anyone else is doing in the market right now. And our pipeline remains incredibly strong. So as I think about our first area for growth, very strong momentum from an organic perspective given our current industry leadership and a deep pipeline on the block side to be able to grow and drive. Now let me shift to the emerging opportunity. Joe mentioned Asia and the opportunity that we see collectively here. Talk about the U.S. market that we're in today, $4 trillion. If you just look at Japan, Singapore, Hong Kong, and Korea, those markets combined are bigger than the U.S. market today. And there's no one better positioned to be able to take advantage of that opportunity to collectively serve our clients in these regions is Global Atlantic and KKR. On the global Atlantic side, we already have clients that we've entered into transactions with who are global in nature, who have needs in the region. We've already been building up a deep pipeline of relationships, and we have a playbook for how to execute in-country capabilities that we've got today. And we've had success. That includes entering into one of the largest transactions in Hong Kong and in Japan recently. And on the KKR side, this will get covered over the course of the day. They already have the leading franchise in Asia, over 500 professionals on the grounds. This is a unique combination to be able to take advantage of this very large and growing opportunity set. And what highlighted that was the joint venture we entered into or strategic partners we entered with Japan Post that brought the best of both what is capable between Global Atlantic and KKR. Let me spend a little bit more time on Japan, second largest developed market in the world. It's interesting to do a side-by-side and think about what we saw many years ago in the U.S. and how it compares to what we see in Japan today. Three billion dollar addressable market versus four trillion dollars in the U.S. Same trends as we see. Growing demand for retirement products in the aging population. Interest rates that have been low for a sustained period of time that are finally rising. and public companies trading well below book value. Now looking to figure out how to optimize capital, exit non-core lines of business and really start to think about growth. No one is better positioned to be able to help our clients and expand and scale than Global Atlantic and KKRI. Here's the other thing that I spent a lot of time thinking about, size of markets. We talked about $3 trillion versus $4 trillion. Remember in the U.S. market, we discussed $300 billion of block transactions and $300 billion a year in annuity sales. In the Japanese market today, it's only $100 billion or less than in annuity sales and less than $25 billion in block transactions that have been done. There is a lot of room to run in Japan alone for us to be able to collectively scale and grow our businesses. Let me wrap up with fundraising and this concept of insurance is an asset class. Remember, I talked about our straightforward business model. If we do a really good job and we source stable, low-cost liabilities, we match them up against assets originated by KKR, and we earn a positive net spread, we can generate consistent, stable earnings and dividend capacity. That is what investors have chosen to do when they invest behind our Ivy franchise. Investors receive uncorrelated high returns, and as a result, they've been willing to put $1 billion into our IV1 franchise that we raised in 2020, $2.4 billion in IV2, and we'll be back in the market again for a future IV raise. This is a unique franchise where we've developed a unique track record. This benefits our clients as well. It gives us the opportunity to have more capital to solve more of their needs, and And at the same time, it gives us the opportunity to be more meaningful. And as noted, 75% of the capital that backed our last two reinsurance deals came from third parties, either through our Ivy franchise or through CoInvest. This starts to look like a lot of the other KKR asset management businesses over time. Think about the growth that we talked about earlier in products like infrastructure. structure. Insurance has the opportunity to be the same kind of vertical. And if we do this really well, how does it help Global Atlantic and KKR? It gives us the opportunity to generate more fees and ultimately carry it if we perform for our clients. Let me conclude where I started. And as you'll hear from my remarks, from Scott and Joe's remarks, we have meaningful confidence in our ability to continue to scale and double global Atlantic from here. We have that conviction for these four points. Number one, we already operate a leading insurance franchise. Top three or top five in many businesses. Two, what have the past three years shown us? We've already developed an incredible track record of working closely together and having shared success. We had so much conviction, in fact, that we believe that 100% we can unlock further value. The market fundamentals remain incredibly compelling, especially in the U.S. and in Japan in particular. And lastly, we've got a methodical and strategic approach to grow. We've got multiple ways to grow from here. And look, if we do all of this well, if we execute at a very, very high level, we can generate strong assets and earnings growth, can remain focused on protecting our policyholders, provide an incredible employee experience, truly be an employer of choice, and provide more value to more clients. With that, thank you for your time, and I'll turn it over to my partner, Chris Sheldon.

Good morning, everyone. It's really nice to be here. As Alan mentioned, I'm Chris Sheldon, a partner with a firm based in San Francisco, and I co-head our credit and capital markets business for KKR. I co-head that business with Adam Smith who you will hear from later this afternoon. He'll talk about the capital markets business and I'm here to talk about our credit business. Some of you may not know but we're coming on our 20th year anniversary of credit. I'm also coming on my 20th anniversary of KKR and we've seen a lot of different cycles, a lot of different market volatility and we've had a lot of adventures. Maybe not as much as Indiana Jones based on the theme song, but nonetheless it's been a great two decades. My goal for the next 20 minutes is for all of you to walk away with the following four things. One, we're large and scaled, we're diversified, we're global, and we're still growing. We're growing across our public business, we're growing across our private business, we're growing across our corporate and our asset-based finance business. As a result of that scale, we also deliver differentiated origination. Coupled with that origination and the one-firm culture, we've delivered distinguished outcomes. We leverage that large capital base, we lean into the one-firm model, and we have a leading capital markets business that coincides with our credit business and coincides with all the different businesses at KKR. One of the more important things is number three. Now is the opportunity for credit. Not just for our investors, but for the asset managers, and more specifically for KKR credit. We are positioned to win right now. Significant amount of growth coming from the expansion of some of our complimentary strategies and our younger vintages, in addition to just the compounding of interest and taking more share and taking advantage of some of the technical tailwinds in our maturing businesses. So where are we today? We're 220 billion of AUM. That's the largest business within KKR. It represents 40%, just about 40% of KKR's total AUM. And we think about our business in three different segments. First, our leveraged credit business. Think of that as anything traded, corporate bonds, leveraged loans, high-eo bonds, multi-asset class products, in addition to anything traded in the structured credit space, both from a QCIP ABS standpoint to structures that we manage, like CLOs. What you'll see later is we're really proud of our track record here. It's exceptional performance, and a lot of investors are noticing this, and growth is coming even more. Second is our private credit business, and I think of that as two different businesses within that. First, our corporate private credit business, so think about that as direct lending or junior debt, which is about $40 billion, and the remaining is in our asset-based finance. So anything against cloud or black cash flows or financing hard assets. Both of those businesses have material tailwinds, which I'll go into in a little bit. And our third business, which is our youngest business, we started in 2020 and began in 2020, is our strategic investment group. Think about that as what we did is we took a team, we put them in the center of KKR to trap all the origination we were seeing, all that proprietary deal flow that we're seeing that didn't necessarily fit the traditional flagship funds. So what we've been doing there is actually a lot of bespoke capital solutions for our partners. And as you can see within this market where valuations are low uncertainty, the capital markets are a little bit finicky, that team has been extremely busy and a lot of interesting risk reward. List the capital markets business here. We run those things together, as i mentioned super important to show that i won't steal adam's thunder but we do think of that as one cohesive unit it makes us stronger it makes us better similar what you saw from nate and pete we've grown a lot since the last two investor days up nearly 250 or 3.7 times exciting thing about this is we're still growing a lot of opportunity both market tailwinds and kkr specific situations when you're a scaled player and you're in the market all day every day this is what it looks like 445 billion of origination over the last handful of years a hundred billion of deployment in our leverage credit business 43 billion in asset-based finance i bring that up because scott mentioned it we're scale there and it's growing into some market technicals 81 billion of additional origination coming out of ga this works because of our collaboration because we lean into that integrated origination machine and engine we mine 1900 of our existing issuers relationships we already have with those companies our management teams our owners we've evaluated 15 000 investments that just go through our screening process don't even get to our ICs. And there's about 5,500 investments that actually hit our ICs just in our more mature strategies. We also partner a lot with our different counterparties. We've participated in 800 new issues. We trade $25 billion annually with the street. We leverage the one firm to get real relevancy. It's powerful. Not only are we scaled, we're global, we've been growing, but we're also diversified and we're active this is what a full weatherproof diversification business looks like we're diversified by investment strategy and more importantly we're diversified by source of capital what's exciting is if you look at the source of capital a lot of it is permanent perpetual or sticky in nature think about the insurance company think about our clo's which are perpetual structures and long-dated. Think of our listed BDC, which is permanent. Actually, let's focus on that only 6% of our business is in drawdown LPGP structures that have fun lives or maturities. This enables us to weather multiple different cycles through multiple different periods of time in the future. What's also exciting, I'm very proud to be partnered with 650 of our partners across 47 countries. If any of you are here today, I just want to say thank you. We don't take that trust for granted. So what enables us to get large, diversified, and scale is delivering for our clients. And we have done that, and we will continue to do that. And a big part of it is leaning into our culture and our collaboration and tapping into all the tools we have in our toolkit. You know, if I go back years and years before KKR and I think about my first job in credit, my first boss said to me, Chris, if you want to stay in credit, you have to be right 99% of the time. It's pretty intimidating as a 23-year-old. The reality is, if you think about it, it's right. You invest in credit, your upside is to get your money back. You get some coupon along the way, and your downside is zero. On a loss-adjusted basis, you need to be right 99% of the time. This allows us to maximize the impact of our model, find better investments, and more importantly avoid the ones that we shouldn't be in. And the results speak for themselves. This is our leverage credit business. We are ranked number one in our opportunistic strategy across all below investment grade managers. Not only one in all below investment grade managers, we're number one in that period across all global fixed income managers. We've produced 24,000 basis points of cumulative outperformance since that period of time. 24,000, not 2,400. We did almost 800 last year. We take that framework and you look at the rest of the leverage credit composites and strategies, top five percentile in our multi-asset class, more diversified product for 15 plus years. In all our more single-asset class leverage credit composites, we are taught quarter over those periods. If I go back to the 99% stat, of the large-scale CLO managers, we have the lowest default rate. And if you look at our alternative credit, you've seen this slide already a couple times. I think Joe mentioned you stole it from Craig. I think you guys stole this one from me. But in all seriousness, no, double-digit teams types returns relative to the benchmarks. Super proud of this. Exciting thing about this, and similar to what Nate said about the PE business, a lot of this, the carry is yet to come. These are higher-yielding carry performance fee strategies. That is on the come and should come over the future years. So if I shift a little bit from KKR-centric and focus a little bit on the market, now is the time for credit. There's a ton of market tailwinds that are increasing asset allocations to credit. The first one, elevated rates for longer. We're just at a higher resting heart rate. Henry McVeigh says that a lot. But we're also not going to have a big spike in defaults, is our view. There's a growing consensus around a softer landing. For a credit geek like myself, that is nirvana, particularly if you can pick the right credits. Compounding that interest. Most of the mandates we have, we reinvest that income. You compound that at a higher rate, business grows. I think it was Albert Einstein who said that the eighth wonder of the world is interest compounding. I like that. Investors are noticing allocations are coming back into the market, so we're getting the double whammy. We're growing and compounding, but we're also getting increased allocations. Two, Scott touched on this a little bit, ongoing bank de-leveraging and a lot of pullback on non-core lending. This is fueling our asset-based finance business. We're seeing more and more activity. We're seeing more and more portfolios coming for sale. We're seeing it shift. We're positioned well for this. This slide shows, and this chart just shows the number of U.S. banks and how they've been declining. Three, there's just record levels of dry powder private equity out there. Last I checked, I do not think they're going to give that money back. So what does that mean? They need to buy things. M&A is going to increase. When they buy things, they need financings. We're here to finance that. We have a leveraged credit business. We have a private credit business. We have a strategic investment. They're going to come to us. financing is going to be in high demand. And finally, Joe's touched this a little bit, the developing Asia-Pacific capital markets are just at the infancy. There's a huge amount of resources we're putting into Asia-Pacific. If you look at just the market now, there's just not enough flexible capital and the demand is there. If you just look at this chart, 80% of the financing is trapped in the banks. That compares to 50% in Europe and 30% in the U.S. That's a decade-plus trend that's going to continue to be a tailwind for us. There is so much untapped potential as this market is growing. And the market is big today at $40 trillion. And we're big today at $220 billion. But credit is there. There's going to be continued growth and demand for credit, just as there was since the dawn of civilization. In addition, it's evolving. it's evolved post-GFC. You saw it with a direct lending market, you're now seeing that shift in the asset-based finance market. Third, investors are just getting more and more access to diversified pools of credit portfolios across the public space, across the corporate space, across the asset-based finance space. A decade ago, a lot of investors could not build a diversified portfolio across multiple different asset types in scale. You can now, which is all resulting in increased portfolio allocations to credit in a diversified way and on a scaled way, and that was just not available. And that's the power of what's happening in this evolution of the market is we're going to benefit from that. So how do we go do this? This is our recipe for success. Four things. One, continue to do what we're doing. Continue to grow our scaled strategies and continue to watch our younger strategies that we put into the ground to continue to monetize, to continue to perform, continue to realize performance fees. Two, lean into insurance as an asset class. Lean into the partnership with Global Atlantic. I'll touch it about a little later, but there's a huge opportunity there. Three, capitalize on where we have first mover advantages. Two of those, one is asset-based finance. The second one is Asia Credit. And then three, I'll talk about all our investment, what we've been doing in distribution. I won't steal too much of Eric's thunder, but I'll focus more on what we've been seeing and what we've been doing in the credit distribution space. You do that, you couple that together with our culture and our KKR brand and our brain, and we're positioned to win. So first of those, we're growing. You look at our mature strategies, leveraged credit and direct lending, up 3x and 2x, continue to compound that interest, continue to deliver results, continue to take advantage of those market tailwinds. They're going to continue to grow. And then our newer strategies, SIG, which is strategic investments, is our youngest, up 14% over those few years, continue to grow as we get later and later vintages and start realizing real performance income there. Asset-based finance, we've talked a little bit about, I'll dig in a little bit deeper, and Asia-Pacific, although small today, huge opportunity over the coming decades. You heard Alan talk about Global Atlantic and how excited he is about Global Atlantic KKR. Now you get to hear about how excited I am. As Scott alluded, Global Atlantic is an economic multiplier. The increased origination and scale that it brings, along with being able to speak for up and down the capital structure just unlocks so much incremental origination. Origination begets origination. So when you put those together and you are increasing origination for GA on the high-grade ABF side and you're increasing origination for our third-party capital, whether it be our flagship funds, our K-Series, our BDC, or even all our strategic partners, it's powerful. And what it leads to is increased insurance operating income for that segment, increasing performance income for our flagship funds and our partnerships, and this is where it gets fun, double two times the fee-related earnings, the multiplier effect, and then double on the capital market aspect. I won't jump too much into the capital markets because I know Adam's going to spend some time there. Super powerful, and we're leaning into it and super excited about that partnership. We've talked about asset-based finance with the market tailwinds we've talked about asset-based finances in terms of how it's grown for us we talked about asset-based finance both high grade and with regards to our global atlantic i think it's worth sort of digging in and why we think we have a differentiated asset-based fans platform and why we think we have a little bit of a first mover advantage here one we're scale 48 billion of AUM a 50 person team that's seasoned with 22 years of experience its growing market five to seven plus billion this fourth one is pretty interesting it offers 350 basis points in our high grade abf strategy over ig corporates that's getting noticed by insurance companies in addition to public pension plans it's a great way to diversify their corporate macro exposure particularly as we're going into a slowing economy and we can do it in a diversified multi-asset type approach from aircraft leasing to auto lending all the way to resi. Having a global diversified platform offering attractive income with a lot of downside protection of which that downside protection and income is often not correlated to corporate macro risk in this economy is super compelling for investors. But it's not just us that are originating all these ideas. We have 19 captive platforms, 6,700 employees there, adding an incremental 20 billion of origination a year for us. Super powerful. It's a global platform. You can see the map. It's also very diversified by asset type, leading to our first-mover advantage. Second first-mover advantage is building on what we have in Asia, and you'll hear from David later in Gorov. We have a true competitive advantage and platform there. You heard from Joe just how the region's growing based on percentage of growth of GDP or how much that region represents of global GDP. But right now, the demand for credit outstrips supply. And given all the market inefficiencies there, Given it's still developing and changing and evolving, if you can have fundamental credit, expertise, you couple that with local knowledge, a large team that's broad-based across those offices with a lot of relationships, you can actually perform really, really well. And if you just look at the market here, it's pretty powerful. It's right now, if you just look at the European market, 28% of credit relative to private equity is in private credit. Right now in Asia, it's 3%. If you just get the equilibrium of where Europe is, that's almost a $700 billion need and growth opportunity. And I think we're the right ones to do it. Almost $14 billion of transaction volume, $4.5 billion deployed in Asia private credit, and we're delivering results at 18% gross IRs. Now let's focus on our distribution. You'll hear from Eric and you've seen the slide that we've grown distribution as a global basis just about three and a half times. However, we've evolved the credit model. We used to fundraise based on generalists. That distribution team's selling everything across KKR. A few years ago, we made a change. Real estate did the same where we have dedicated credit fundraising people. Boots on the ground to talk about credit. We supplement those teams with credit product specialists that can talk the talk, let the investment professionals invest, get progress. You put all that together, it equals increased growth and more prospects. Bottom right, plus 200% increase in dedicated credit people, credit salespeople. 160% increase in product people, the people that can talk the talk. What that's resulted in is 80% increase in meetings and five and a half times increase in prospects. Fun fact, we had more prospect meetings in the first half of 2023 for our credit business than we did in all of 18, 19, and 20. It's working, the team's seasoning, we're going to see more and more results. So I hope what's come across is i've never felt better about the credit business today than i have ever in my 20 years here we're large we're scale we're growing we have the right products we have the right team we have the right younger strategies with the roots in the ground to grow and we're going to continue to grow and mature as we see it and you're getting that compounding of interest second we have the insurance and we have global atlantic that's the economic multiplier which is super powerful Third, we're going to capitalize on first-mover advantages, whether it be ABF or Asia, or in structures that are first-mover, like our Evergreen direct lending structures, as direct lending and private credit is becoming more permanent in the asset allocation. And finally, the investment we've made in distribution is working, and we'll see a lot of benefits as a result of that. So I'll be around at lunch. I want to thank you for your time. And I'm going to pass it to my colleague and partner, Raj Agrawal.

Thank you, Chris. Morning, everybody. Raj Agrawal. I joined the firm in 2006 in the Menlo Park, California office, and I run our global infrastructure business. I wanted to talk about two things today. First is that we've built a leading platform in infrastructure, really with performance as the bedrock of that growth. Today, we have nearly $60 billion of AUM across three distinct strategies, global infrastructure, Asia infrastructure, and core. That $60 billion makes each of these strategies number one, number two, or number three in its respective market. And we've got to that position for performance. Clearly, and the easy thing to say is, everything that we've done, we've exceeded our target returns by 200 to 400 basis points in the infrastructure business that's a country mile but that's not the only factor equally important while we've over delivered on our returns equally important we've protected capital in every point in the cycle and every time this is a sector where people flock to to protect capital and we've done so better than our peers That combination of delivering returns plus protecting capital in all environments, that is what is at the heart of our growth. The second key point is that infrastructure remains very much a growth engine at KKR in a few different ways. First and foremost, our most mature business, global infrastructure, very much still has multiple revenue drivers built in it. We'll talk through those. Most of our business is very much in the early innings. Asia infrastructure, core infrastructure, where we have global leadership positions, we're still very early in our life cycle. Clearly a lot of growth ahead in these. We'll talk through that as well. I'll spend some time on our pattern of growth and infrastructure. Time and again, in Asia, core, in our global business, we put together leading teams in a market opportunity that was ripe. We had earned the right to grow that business or to go into that market, earned the right through performance, and we launched a business that grew. That pattern is very relevant, and we'll spend time on it because today we're laying the seeds for the next big things. We're following the same pattern. We're entering two new businesses, our climate strategy, and, of course, wealth, serving infrastructure to wealth. These are massive opportunities, and we think we can similarly be market leaders in the two of these. We'll start on the leading platform, very basic. Joe started with this. I won't spend much time. But infrastructure essentially covers everything you need to go about daily life as we know it. So clearly there's some, you know, whether it's utilities, water, power, some traditional sectors. but it's hard to imagine having more exciting growth sectors than digital data centers fiber than energy transition massive amounts of growth in these sectors across it all hard assets contracts great counterparties critical assets really you know it's what you need to make everyday life it's what you what's what gives you security and protection of capital in this sector And it's a big growth area, $100 trillion over the next 20 years. Why does it have so much focus from an investing perspective? Just to give you some context, 20 years ago, if you put all of alts together, infrastructure, private equity, real estate, alternatives and credit, you put it all together, infrastructure 20 years ago was less than 1% of that combined. Today, infrastructure is 15% of alts and growing. Alts, as a sector, you've seen the tremendous growth. Within that, infrastructure is the fastest-growing sector. Why is that? Fundamentally, it starts with these two points, downside protection and upside potential. Let's take an example. If you can invest today in the data center business, hard assets, 30-, 40-year lives, If you can invest in that business and protect your capital through contracts, 10, 15, 20-year contracts with hyperscalers, invest in data centers, protect your capital, but you have a chance to participate in all the growth that data centers promise to bring, that's exceptional risk-return profile. And that fundamentally is why the sector has garnered so much attraction. right i could be wrong about the equity markets i'm putting capital in the equity markets but i can do so in a downside protected way and i can still participate on the upside that's what's made it so compelling that's why it's 15 of allocation today and by the way along the way you can collect a consistent cash coupon typically four to five percent dividend yield and you get inflation protection before the last couple years i used to say four to five percent dividend yield and people's eyes would light up and i'd say inflation protection and they'd yawn now it's flipped four to five percent cash dividend yield ho-hum but inflation protection is exciting depending on the time one matters more than the other and infrastructure you get both and then there's inherent diversification the idea that you have correlation between exporting natural gas to Europe, global data centers, private aircraft aviation terminals, these are vastly different geographies, sectors, key demand drivers, and so inherently diversified within infrastructure. We've delivered on the two key promises of infrastructure. We've delivered more than expectations, both on downside protection and on value creation and on return. From a downside protection perspective, Our realized multiple on deals, deals that we've exited, is 2.2 times across everything. In the small type, we've made over 80 investments. We've realized over 20. Our single worst-performing investment, we still got 90% of our money back. That's capital protection at work. The biggest stress that we've had since our inception was during the COVID crisis. In the first quarter of 2020, broad markets were down 20 to 30 percent. Even the listed infrastructure index was down 20 percent. KKR infrastructure was up 6.7 percent in the first quarter of 2020. Downside protection working. We actually got a call. I got a call from one of our longtime clients. First quarter of 2020 was a tough time if you were a capital manager. And he called and he said, thank you. Thank you for paying the distributions this quarter. Across all of our asset classes, you're the only fund, the only firm that gave us a distribution this quarter. It was that unique in that short-lived distress, but that massive distress that you felt in the first quarter. And we're positioning our portfolio to continue to be low risk. We're on average leveraged 42%. That tends to be investment grade or just below investment grade. Preserving capital, but also delivering on returns. So I'll walk through in our global infrastructure strategy our funds to date. Our first fund is complete at a 17.6% gross IRR, and you can see the return evolution over the years. They tend to increase until you have final exits. Our second fund is still live, but it's almost complete, and it's running higher than 17.6. It's at 19.7. Mind you, the target IRR in this strategy is a mid-teens IRR. So you can see the overperformance, 200 to 400 basis points or greater. Now we're getting into the more recent funds. So still a long way to play out in Fund 3. But the performance today at 16%, it's trending to be somewhere right in the ballpark of where Fund 2 and Fund 1 were. So again, overperformance. And the most remarkable thing, given the increased scale, if you look at our most recent vintage, super early here, but you look at what we can measure, our one-year return in the most recent vintage, 7.8%, that is higher than the first-year return in any of our prior funds. At this point in time, while it's way too early to call it, it's our highest performing fund to date. So again, consistency on returns, consistency in capital preservation. This performance is the key to growth. And we've seen that growth. So this just maps out our four funds that have been active in global infrastructure land. With the top bullet across all of them, a billion-dollar first fund, That's what led the performance, the growth, the capital protection leading to a $17 billion fund for. That fund today is nearly complete in terms of investing. The interesting thing is, if you look at our new seeds, we see some similar phenomenon. So, Asia Pacific Fund 1, 2020 vintage, still very early in its life cycle. At this point in its life cycle, delivering a 14.4% gross IRR. and protecting capital every bit as well as we've done in the global infrastructure series. This bodes well, right? If we can over-deliver on returns and protect capital in the Asia series, like we did in the global series, that bodes well. We've seen that play. Same in our core infrastructure business. This is our only open-ended fund, always available for capital to come in, always available for redemptions. We haven't seen any yet. It's a $14 billion strategy. strategy, it's targeting 8% to 10% gross returns. Today, it's delivering 11% and protecting capital wealth. Again, overperformance, protecting capital wealth leads to growth early in its life cycle, but promising. How do we do it? The truth is we could not do it as an infrastructure team. No way. We have tools and culture, and together they're our secret sauce. When we talk to the tools briefly just give you an example you know we we with Telecom Italia in Italy we own the leading fiber to the home business if you want high-speed internet access in Italy you go through Telecom Italia most likely and we own it we own that business with them in a joint venture we had to raise four billion dollars of debt and equity in 2020 in Italy when Italy was the hardest hit country by covid that doesn't happen by us as an infrastructure team that happens with adam and his capital markets team and our capital solutions team raising the debt and equity to get us that it was highly differentiated frankly we didn't think we could do it but our our brethren in the firm did this was a critical asset to the country it literally needed government and legislative approval in Italy. We had no hope as an infrastructure team to get that approval, but working with our colleagues at the Global Institute, Public Policy and Stakeholder Group, we got the support of the deal from the President of Italy, from both leading political parties, from the Treasury Department of Italy. We even had the U.S. Ambassador to Italy working on our behalf to get this approved. That doesn't happen as an infrastructure team. I could go on and on. KKR Capstone, our operations team, Telecom Natalia had never done a carve-out. Our Capstone operations team actually went into the offices in Rome and helped identify where does all their cable sit today. They didn't have it accurately mapped. If we're doing a carve-out, we need to figure that out. We have incredible tools. It's an unfair advantage, but it's not just the tools. We're not the only ones on the street with the tools. The culture that Scott referred to, the we culture, not the I culture, you've got to use the tools. Your colleagues in the firm have to want to help out. You need the culture and the tools. When they come together, it can't be matched. That's a huge barrier. We're resting on the shoulders of Henry and George and Joe and Scott in 50 years of history for that culture. It's a huge barrier to entry. very difficult to pull off. And we couldn't pull it off without it. Joe's covered this, so I'll skip over. Second key point, we're still a growth engine. Two key drivers of future revenue growth in the global infrastructure strategy. You can see historical fund commitments as they've marched up. And the beauty about being in such a fast-growing business, even if you believe, I don't believe this, but even if you believed that future funds in this strategy were of the same size of the current fund, those new funds are coming on as your billion dollar fund, your three billion dollar funds, are rolling off. There's a structural, even if we stop growing from here, again, which I don't believe, there's a structural wind at our backs that provides future revenue growth. And then if you look at revenue composition, as we raise larger funds, the purple here shows management fees. As we raise larger funds, the management fees, that's really the only contemporaneous revenue that we get. As we raise the dollar, we turn the fund on, we get paid on that dollar. The other revenue lines come with some delay. So capital markets fees, those are based on transactions. It takes us a couple years. Within a couple years, we hit our stride with a larger pool of capital and generating capital markets fees. It comes with a delay, but not a big delay. The rest of the revenues come with a big delay. Our average realized carried interest, realized investment income dollar that we're generating, that might be five, six, seven years after we raise the first dollar of capital in a fund. And so the realized, carried interest and investment income today, we're generating on the back, frankly, of a $3 billion fund, another big structural tailwind for growth in this business. The global infrastructure strategy is not done growing. Now, let me spend a minute on the new businesses and, importantly, our pattern of growing those businesses. In our first 10 years of existence, we were really just trying to establish ourselves. you know fund one put us on the map i believe in the top hundred the top 50 asset managers and infrastructure by the time we got around to fund three we were protecting capital we were over performing i think we had made the top 10 to 20 list in terms of asset managers we had a team that was performing stuck together we had earned the right to grow and so what did we do this was This is our global infrastructure fund, but really it was just investing in Europe and North America. It's a misnomer. So we took what we had and we just extended it into Asia with a terrific management team. David Luboff, who we hired to start our Asia infrastructure fund. And from the get-go, we started in 2019. By the time 2020 rolled around, we had the largest Asia-dedicated fund in the business. And we didn't stop there. Again, with the momentum from our global business, the performance, the investor support, we also launched a core infrastructure fund going at the low end of the risk return. It was our first open-ended fund, always taking capital, redeeming capital. We did that on the heels. We had great leadership. We found an internal leader. Tara Davies, one of my partners. and that business very quickly by 2021 became the number three player in that business. So now we go back, we're in 2020, we've launched these two businesses very successfully and the COVID crisis hits. And recall, in the COVID crisis, our performance was even more differentiated. We posted 6.7% returns first quarter of 2020, nobody else did. Our team was together. Results looked strong. We leaned into that, and we raised our fourth fund in global infrastructure. Massively outgrew the industry. Our top two competitors, who had roughly $7 billion funds in 2018, they grew their next vintage series to roughly $11, $12, $13 billion. We were clearly grabbing share in the industry, and it was because of that performance, the growth, the cohesion. And then, of course, we've come back and continue to scale our Asia business. Two points important to take away. Number one, really, frankly, in all these series, these are still scaling, growing businesses. A lot of room to run, in particular in Asia and in the core infrastructure business. But the second key takeaway is the pattern, the pattern of leaning into strength, performance, timing, events, leaning into strength to launch new businesses because that's what we're doing again right now. Today we come from a position of strength. Each one of these businesses is outperforming and protecting capital well and so what are we doing it with it? We're launching our climate business. Massive market opportunity, Joe talked to that. We think it's underserved. We think the most capital and climate is at the low end of the risk return spectrum, focusing on operating assets or it's at the high end venture capital breakthrough technologies we're planning to attack the middle we've earned the right these are all sectors we've invested in quite a bit we come from strong performance we're attacking the middle with an infrastructure-led mindset massive market and we think we can be a market leader here much following the same pattern that we did with asia and core infrastructure my partner elisa will be talking a little bit later our second key growth initiative where we think the market is huge and where we can be a leader is is bringing infrastructure to the individual investor with that i'll wrap up you know we clearly have come a long way in this business very grateful for the support of the firm for all the support of the different functions in the firm i do think scott said it best i think in this business we are just getting started that's true with respect to our existing businesses and the scale that i expect and it's certainly true as well with the new businesses that we have that are attacking what i think are tremendous markets with that thank you and i'll hand it over to my partner ralph rosenberg so if you don't like the song you can call my wife or i'll give you her

cell phone uh you can text her uh i'm ralph rosenberg and i run our global real estate business here at KKR. I joined KKR in 2011 when senior leadership wanted to create a global real estate franchise. So today I'm going to tell you a little bit about from where we've come and I'm going to tell you a lot about where we're going. So let's start with the key takeaways. You've seen similar slides from my partners earlier this morning. Importantly, we have built a global, scaled real estate franchise that is really hard to replicate. That franchise not only spans all three regions of the world, but also is relevant across real estate credit and real estate equity. And that combined, integrated approach in both credit and equity is a very, very meaningful competitive advantage for us. Second takeaway is really that we're at an inflection point, in my opinion, in the global real estate markets. There's going to be a massive deleveraging cycle here. And we are incredibly well positioned to take advantage of that deleveraging cycle, which I'll touch on in more detail in a couple of minutes. Third takeaway is that we have lots of ways to win. I'm going to walk you through four different levers that are easily actionable for us to really create significant scale here from where we've come. And then lastly, I do want to just touch on up front, There's a lot of press and discussion around real estate valuations and the disruption of technology, particularly in the office sector and the retail sectors globally. And importantly, we have very, very little exposure to collectively these two property types. In fact, if you look at total KKR AUM, I think about 1.7% of all of our AUM is exposed to retail and office. And the office exposure is predominantly in senior secured mortgages that have 35 to 40 points on average of subordination behind them. So let's get into it. From where we've come, we currently control $69 billion of third-party AUM. Importantly, that controls about $251 billion of underlying real estate. Why does that matter? There's a lot of pattern recognition that you see in terms of what the behavior is across real estate of all different property types across the globe. And you can use that pattern recognition to either be nimble in terms of what to exit or aggressive in terms of what to lean into. Importantly, we have 150 professionals directly on the real estate headcount inside of KKR in 16 offices in 11 countries. Nate Taylor made the point earlier about the private equity franchise being able to take our existing headcount and create significant scale without adding a lot of heads. The same is absolutely true in our real estate strategies as well. These 150 professionals are really the engine room of the system that we have in place to continue to significantly scale our AUM. I'm going to touch on something that Joe mentioned earlier in a couple of minutes around these operating platforms that we also control, which give us off-balance sheet capabilities that support the real estate franchise as well. so the circles in the center of this slide really touch on like what the winning formula is for us in real estate at KKR and why we really matter and why we're relevant in a very mature sector of the alternative space globally number one we've got this global platform it's not only important because we can touch real estate markets all over the world but we also are deeply integrated with the other parts of KKR in each of these locations globally, and that's very, very important for our ability to identify themes, to create sourcing channels, intermediary relationships, and of course, capture value creation once we own properties or platforms. This one firm approach is really meaningful. This theme identification comment I made comes from private equity, comes from credit, comes from global macro, comes from our capital markets franchises in each of these parts of the world. The transaction capabilities come from this scaled approach that we have to these markets controlling this $251 billion of underlying real estate. We're constantly in the market transacting in both real estate credit and real estate equity. In this operating expertise circle on the end of the page, it's really twofold. Number one, we control our own operating and management capabilities in lots of different parts of the real estate market. And also our relationship with KKR Capstone allows us to not only use that expertise to enhance these real estate dedicated operating platforms, but also to be really, really nimble in terms of doing everything from the benign single asset purchase all the way up to the complicated platform creation or take private of a public to private. So collectively, this slide sort of captures like the scale and the power of the KKR real estate franchise. This is a more detailed version of the slide that Joe put up earlier today, But I think it's super important to understand the journey that we've been on in real estate. So as I mentioned, I came here to start and build a real estate business. 2013, we raised our first real estate strategy with external capital. It was in our highest margin product in the United States, which is a closed-end opportunistic strategy. And then we approached the scaling of the real estate franchise, almost like moving chess pieces across a chessboard, where we systematically set up a real estate credit business. Then we systematically built a high margin business in Europe. Then we built a high margin business in Asia. And then as we started to organically grow each of these parts of the puzzle, we talked in adjacent products, the safer return, lower risk strategies that are oftentimes the product of choice to institutional investors. And then we partnered with our balance sheet team to identify two really significant ways to capture real estate market share. One is, of course, the relationship that Alan mentioned with Global Atlantic. And then secondly, as was mentioned by Joe and also by Alan, this acquisition of one of the largest real estate asset management platforms in Japan allowed us to capture permanent AUM and also give the firm a strategic valve to create more asset identification and capture that AUM in Japan. I'm going to talk more about that in a couple of minutes. So this is from where we've come, and now we're going to talk a little bit about where we're heading. So, this mosaic is a visual of all the independent real estate strategies that we run. There are really two takeaways here. Number one, we're across the capital structure in both credit and in equity. And secondly, the way we constructed our business with these independent products gives all of our LPs the agency to think about where we can be the most effective thought partner in the real estate investment space to fulfill their portfolio allocation needs. So we can be a partner of choice to somebody who wants senior secured credit exposure or real estate securities exposure or the partner of choice who's looking for higher octane exposure to the opportunistic equity space. And we can do this globally. That is a very, very powerful engine room or suite of products that we can offer our LP community. And then the last takeaway on this slide is because we have the capability to do all the things that I just mentioned, we are really, really relevant to all the financial intermediaries in the world that are responsible for connecting real estate capital to solve real estate problems. Joe mentioned this very briefly, but it's super important to just dig into it in a little bit more detail. In addition to the 150 professionals that are effectively on my team globally with a KKR business card, we have all of these operating platforms around the world that are set up by property type and by region to effectively make us better acquirers of product and identifiers of opportunities in each of these marketplaces. So, what's a simple example of that? We built a student housing platform here in the United States. That student housing platform owns and operates about 13,000 beds in student housing. Those people in that platform do not sit on the KKR headcount. They are sitting inside of an operating subsidiary that is owned by one of our opportunistic funds. And the way our funds are set up is we transfer each of these operating platforms from fund to fund as the investment periods expire. So if you extrapolate off of that example, on this slide, in each region of the world, we have this type of expertise in lots and lots of different property types. And what does that mean? It means we can continue to grow our AUM and our investing acumen around the world without adding really much meaningful headcount to the KKR team. On the bottom of this slide, I want to point out two things. First, on the very bottom, K-Star is our fully-owned, on-balance sheet, credit asset management and loan servicing platform that we built in Dallas, Texas. Why did we do that? Number one, we control a lot of real estate securities. In controlling those securities, oftentimes you have the right to control the special servicing of CMBS structures. KSTAR is a certified special servicer, so we can capture those fees for KKR. Secondly, by building out an asset management team in Dallas, we can effectively migrate out of high cost of living, high cost of doing business centers like San Francisco and New York with respect to asset managing and servicing a very, very large credit portfolio and put all those activities down in Dallas where a lower cost of living, highly educated workforce, high quality of lifestyle can attract real talent at a fraction of the cost that would be required if we were to build that here in New York. And to put an asterisk on that, as we continue to scale our credit business in real estate in Europe, we're going to migrate that KSTAR franchise actually to Dublin and effectively rinse and repeat that formula. KGRM, hold off on that for one minute because we're going to get to that in more detail in a second. Punchline here, we can scale very efficiently with dedicated captive resources without adding a lot of headcount at the KKR level. So why are we super pumped about the runway here for our real estate franchise. We're $69 billion today. That's pretty big, but we can double that pretty easily, in my opinion. Why is that? Number one, the investable marketplace is very, very large. It's a $28 trillion industry. It's one of the biggest industries in the world. Secondly, we've got this moment in time that Joe actually referred to where the world is under-allocated to alternatives generally. And then, of course, within alternatives, one can extrapolate on that observation that the world is under-allocated to commercial real estate. We have an incredibly interesting opportunity to capitalize on both the institutional and the individual investors under allocation to the sector. As I've mentioned, we've got a global-scale platform, very tough to replicate, puts us in a position to win. And then lastly, to reiterate what I mentioned at the beginning of the presentation, we're really on our front foot. We really are spending most of our time being intellectually honest and curious about where to take advantage of real estate opportunities that are presenting themselves. So let's go into these four levers that we can pull. Opportunistic equity, which is basically the code words for our high margin, high fee and carry paying closed end products. Secondly, is this real estate credit franchise that I've touched on in this relationship with with Global Atlantic. Thirdly, we're going to talk about Asia. I'm not going to repeat Joe's comments around the scale of the opportunity, but I really want to peel back the onion on how we're set up there and the relationship with KGRM. And then lastly, it's important to understand this opportunity set that really we've not even tapped in to any real extent around perpetual open-ended products that are lower risk, lower returning products that are very much the comfort zone of lots and lots of institutional and individual investors around the world. So let's hit each one of these briefly. This is a visual of each of our opportunistic flagship closed-end fund strategies by region. Two important takeaways, and others have mentioned similar observations earlier today, Raj, most recently, that every time we raise a closed-end fund, the successor fund happens to be bigger, and we happen to be able to do that without adding more resources to our team. So the expectation is, in a business that is relatively young, we've only been raising third party capital for 10 years, that we will be able to continue to raise successor strategies that are larger than the predecessor strategies, and as Joe pointed out, our performance has been very very strong relative to any relevant benchmark. The second really important takeaway on this slide is the light blue bar at the end of each of these sections. It just shows you a snapshot of the largest competitor in each of these markets in the same similar type strategy, similar type structure and the scale that that competitor is currently running relative to our scale. Goes back to a comment that Alan made when he made a similar observation, like there's a lot of room for us to compress the multiple in which we are subscale relative to the largest player in each of these markets. I wanted to make a comment around the connectivity of our real estate franchise to the rest of the firm, just to bring it a little bit to life. On the left-hand side of this slide, in one of the largest public-to-private transactions that has ever been created in anything that touches commercial real estate, really Raj and the Infra team and my team partnered to take private Cyrus One, which is one of the largest data center operators in the world. Why is that significant? It demonstrates this ability to connect the dots across the firm, to leverage expertise, and to find a convergence of where this expertise can create real value for our LPs. And also, it demonstrates the ability to do very, very large deals that touch commercial real estate in the center of this slide this is this logo is shown up in a couple of the other present