The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. Thank you, Adam. Well, why don't we start off talking about the capital markets backdrop. It's been a little bit volatile this year, a little
bit of a pause in April. Now it appears that some of the activity is picking up.
So just curious your take on the outlook for capital markets activity from here. What do we need to see in order to see a significant uptick
in transactions? And what are some of the indicators you guys are tracking and watching on that front?
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JUNE 10, 2025 / 1:00PM, KKR.N - KKR & Co Inc at Morgan Stanley Financials Conference
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Why don't we dive into your KKR Capital Markets business, which you gave a nice overview? You helped build the Capital Markets business
back from its roots in 2007. So maybe just how has the business evolved relative to your initial expectations that you had back many years
ago? And looking out over the next decade, how do you see the business evolving from here over the next decade?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. Why don't we talk about the mix of the business. Quite diversified, right, mix of debt syndication, various types equity syndication,
third-party related transactions in there. I guess, how do you think about the mix evolving over time?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. Why don't we shift to talk about the outlook for transaction fees this year. First quarter was pretty strong despite the backdrop, so
impressive there. I think two-thirds were more debt-focused, to your point, on sort of the debt mix by 80% or so driven by portfolio company
activity. So I guess, how do you see cap markets fees trending this year and the mix of activity?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: And how should we think about the monetization take rate for your transaction fees? I think the overall sort of cumulative revenue you had
on your slide here implied around 30 basis points take rate on the overall volume. I guess, what are some of the areas that are higher when
you think about the different types of transactions? Which ones are lower? And how do you see that take rate evolving over time?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: How do you think about the longer-term growth opportunity for the capital markets business? What sort of growth algo should we be thinking
about here and some of the key drivers, aspirations to doubling the business, would you say, overtime?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. With the GA slide on here, why don't we shift and talk about the build-out of the capital markets business now with Global Atlantic
alongside? How do you see this contributing over the next couple of years? Talk about some of the steps that you're taking here. What do
you need to do in order to best capture the opportunities of that?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. We have a few minutes left. I wanted to turn to global initiatives. I think that's a major differentiator for KKR. You have a large presence
in Asia. So I guess, how do you see the capital markets there developing the areas sort of with greatest demand and tailwinds now? And
what are some of the other regions around the world that you see as having some of the most meaningful growth opportunities?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. We have maybe about two minutes left. So just maybe a question on private credit. You co-head that as well. KKR manages over
$100 billion of private credit that's grown meaningfully over the past year. I guess, where do you see some of the biggest opportunities right
now across direct lending, sponsored finance, asset-backed and across different geographies?
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JUNE 10, 2025 / 1:00PM, KKR.N - KKR & Co Inc at Morgan Stanley Financials Conference
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. I'm afraid we'll leave it there. Thank you, Adam. (multiple speakers)
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