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: Hubert Lam - Bank of America - Analyst
: Hi, good morning. Thank you for taking my questions. I've got three of them.
Firstly, you have a lot of assets that you've raised but yet to be activated $21 billion. When do you expect this to happen? And are you still confident
they can still be all activated this year? That's first question.
The second question is on fund raising. So you've raised $6 billion this quarter, and you're still on track to hit your targets of $20 billion to $25 billion
for this year. Can you give us a little bit more color in terms of where you're getting the fundraising up from? Which Partner-firms? What type of
strategies are driving investor interest and where the fundraising is coming from?
And the last question is on performance fees. Q1 was obviously a very low period, and environment still seems tougher realizations. But at the
same time, you're still targeting 20% to 30% of revenues coming from performance fees. Is this something that's still realistic, or should we expect
something below the bottom of the range now? Thank you.
Question: Hubert Lam - Bank of America - Analyst
: Okay, thank you.
Question: David McCann - Numis - Analyst
: Good morning. Actually, Hubert just basically asked the tooth that I was going to ask.
But I just wanted to touch a bit more on this fee-paying AuM that currently isn't paying fees. And I'm not quite sure if I caught the answer to that
question on when exactly you'd expect to be -- it was $17 billion, I think you said at the end of last year and is now $21 billion. How should we think
about, actually, timing of that coming into fee-paying AuM this year? Thank you.
Question: Luke Mason - BNP Paribas Exane - Analyst
: Yeah, thanks for taking the questions. Firstly, on deployment. As your comments around the overall industry being down in terms of deployment,
just wondering if you can give any insight into what your partner is [doing] in terms of deployment activity and just financing availability of deals?
Secondly, just a clarification on the management fee offsets. Until last year, transaction fees were running a million, $16 million, so roughly kind of
80% offset. On a go-forward basis, what percentage of transaction fees should be offset in the normalized period? I appreciate just some timing
difference related to that.
And then thirdly, just on M&A. I heard your comments on M&A, but just in terms of what you're seeing in terms of valuations for new potential
Partner-firm acquisitions? Thank you.
Question: Luke Mason - BNP Paribas Exane - Analyst
: Great. That's useful. Thanks, guys.
Question: Angeliki Bairaktari - JPMorgan - Analyst
: Yes, good morning. Thank you for taking my questions. Just two clarifications at this stage, please. How should we expect the transaction fees to
progress in the remaining of the year? Is there any element of seasonality in there? Or does it mean that effectively a slower deployment is going
to translate into lower transaction fees this year relative to 2022 in the subsequent quarters as well?
And secondly, just to make sure I understand, out of the $20 billion to $25 billion fee-eligible AuM raise that you guide for in 2023, how much of
that do you think could translate into fee-paying AuM this year? Would it be 100%, or perhaps a smaller percentage as there is usually a lag between
the committed capital being raised and the committed capital turning into fee-paying AuM? Thank you.
Question: Angeliki Bairaktari - JPMorgan - Analyst
: Thank you.
Question: Mike Werner - UBS - Analyst
: Thanks, very much guys for giving me the opportunity to ask some questions. I just got two.
Number one, I believe in the past in the IMSs and your reports, you published a blended net management fee rate amongst the Partner-firms. I
just wondering -- I didn't see that in today. So I was just wondering if you can confirm that that's not in there. And if you could give us an idea of
where it is or why you've chosen not to include it?
And then secondly, instead of thinking about acquisitions into the portfolios, I was just wondering from a divestment perspective, you've got 25
Partner-firms, you have a pretty robust portfolio, how do you think about potential divestments? Is this something where -- again, we've never
seen one yet, but just, again, theoretically, is this where you look at the different businesses and say, okay, well, so long as I suspect they can continue
or I expect them to continue to grow market share, we're keen?
If that isn't the case, would you then consider selling? Is this something that you would be subject to opportunistic events where someone comes
in with a high bid for one of the assets you would consider selling? I was just wondering, again, from a high level how you think about divestments?
Thank you.
Question: Mike Werner - UBS - Analyst
: Thank you.
|
