KKR & Co Inc at Morgan Stanley US Financials, Payments & CRE Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : <_ALACRA_META_ABSTRACT>We're thrilled that you're here. So let's start off setting the stage with the macro backdrop of through the lens of your portfolio companies and assets globally that provide amends insight. What's your view on the state of the global economy we're increasingly hearing about prospects for higher interest rates for longer? How should we think about sort of the push pull dynamics that this could have across different areas of your firm and your portfolios.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And as we think about higher for longer push dynamics, what that could mean across the different parts of your business? Just any sort of thoughts there?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. And one of the main tenants at your recent Investor Day was explaining the business model? And maybe you could talk a little bit more about the business model itself and how the model translates to the 2026 and beyond guidance that you've given, especially as you saw strategic holdings of a separate segment, if you will have reporting for the first time in the first quarter?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : So great backdrop here. A lot to dig into maybe first, just turning to capital markets. Macro conditions have been more supportive over the last couple of months. That activity has been somewhat fairly muted across the sponsor. So I guess, what do you think it takes are green shoots to meaningfully materialize here into more meaningful deal activity? What are you seeing in terms of the pipeline build and conversations and conversion timelines here?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Okay. And you have a leading capital markets business, how would you sort of assess the long-term growth potential of your capital markets business? What's the sort of cyclical uplift tier when activity rebounds versus sort of the secular opportunities that you see -- as you expand the business, particularly in infrastructure, you have the relationship with GA (inaudible) you can help turbocharge that credit aspect of the capital because this is -- maybe you could kind of lay this out for us here? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 10, 2024 / 1:30PM, KKR.N - KKR & Co Inc at Morgan Stanley US Financials, Payments & CRE Conference

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great, maybe shifting over to deployment at KKR. Today, you have about $100 billion of dry powder to be able to put to work. Where do you see some of the best opportunities right now as you look across your businesses as you look across the globe, which most attractive? And are there any areas in particular that you're voiding, maybe office, retail? When does that become more interesting? Does it (inaudible)

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Maybe we could shift gears and talk a little bit about of exit side of the portfolios. I guess what portion of the portfolio as you look at them today, we do say is exit ready and just requires the right sort of deal or environment to come to fruition?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And you mentioned on the deployment side the pipelines are building. How does that look on the exit side, how would you characterize that?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great, maybe turn it over to private credit. You manage about $90 billion and private credit assets today. Where do you see some of the biggest opportunities right now, US direct lending, sponsor finance, asset backed and sort of across geographies as well?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Maybe just double-clicking a little bit on the Asset Based Finance or ABF business. You guys spoke about this at length that Investor Day. But maybe you could just talk a little bit about progress that you've made in terms of building out this platform, some of the recent deployment opportunities and pace? And along with how do you see banks engaging here and the partnerships evolving?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great. Maybe turn it over to fundraising. You've laid out some ambitious targets at Investor Day, $300 billion We expect to raise over the next three years. Clearly, you're going to have some flagships in the market that are going to be coming back. Maybe you could help break down some of the largest contributors to the $300 billion and what sort of funds Scaling are you sort of assuming in that?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And have you broken out like how much fund scaling you have embedded for the flagships? Is that something you guys have --

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Okay. Maybe just double-clicking on the private wealth, opportunity set. You've got multiple angles here. We've got the Global Atlantic. You have the retail annuities with that, you have the case series retail oriented products on the asset management side. Can you just talk about some of the recent trends here just around raising in the private wealth space, where you're most excited and what's yet to come here?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : And that 10 to 20 go into 30 to 50 (inaudible) that mostly coming from the existing products we've already brought to the marketplace. Serge, do you think you have to launch a lot new and more products to hit that?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : (inaudible) that was my next question. But maybe just sticking with that (technical difficulty) product design you mentioned it's a public private investment solution. Like how do you sort of envision the design of the product? And maybe you could talk a little bit about the distribution strategy and sort of how you see this evolving.

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Fair enough. Want to shift over to insurance. You now own 100% of GA. Does that change how you see the long-term growth potential for that part of the business? And where do you see the biggest opportunity right now with GA?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great, [Munition] introduce the strategic holdings as a stand-alone segment. You alluded to earlier, maybe you just talk a little bit about the vision that you have for holdings -- strategic holdings. How similar or different from the core private equity bid business? And how should we be sort of assessing the quality and growth potential of that over time?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great, we're almost up on time. Final question, AI, getting a lot of attention across many different industries. Just maybe you could talk a little bit about how sticky are approaching it and where do you see some of the best use cases across the firm?

Question: Mike Cyprys - Morgan Stanley & Co. LLC - Analyst : Great (inaudible) , hopefully, but there, Rob, thank you so much for joining us.