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: Alex Blostein - Goldman Sachs - Analyst
: First, maybe a little bit on the strategic side for you guys, over the last couple of years, we've seen several private market manager
sales, obviously Peppertree being the latest one. Can you just maybe walk through what drives the decision to decide to part with
one of the Affiliates, especially in areas like private markets, which obviously has seen the fastest growth for you and the industry
broadly.
And as you kind of think forward, should we expect any other potential sales, and would those be limited just to minority stakes, or
you could see yourself also selling down, one of the majority owned Affiliates as well? Thanks.
Question: Dan Fannon - Jefferies - Analyst
: Just wanted to follow-up on the liquid alternative flows. As you mentioned, record quarter, and you mentioned a few firms, but I
was hoping you could talk about just the diversity of flows in the quarter, the conversations with clients are having around these
products and how to think about this quarter versus the outlook based upon the conversations and the backlog you're having around
the institutional products that is driving these flows?
Question: Bill Katz - TD Cowen - Analyst
: I appreciate taking the question, good afternoon. Maybe just switching gears a little bit on the equity side of the equation. I was
wondering if you could talk a little bit about what you're seeing there in terms of allocation discussions by investors either coming
into equities, just given the market dynamics, going out of equities, and if there is any kind of change maybe overlaying growth
versus value or international versus domestic appeal.
Question: Brian Bedell - Deutsche Bank - Analyst
: Great. If I can ask a two-parter. Just to clarify again, I think you said like 8% accretion from the three investments and the sale of
Peppertree on a net basis. And I assume that's an annualized run rate basis after fully completed as opposed to 2025.
And then if you can comment on that 8% on EBITDA and/or economic EPS -- and then if I can layer another question on organic
growth. It's kind of a perfect balance this quarter between alternatives versus long-only equities on both sides, so kind of a neutral
overall AUM net flow profile. But can you comment on whether it was a positive or negative base fee organic growth profile considering
the fee rates in your ownership stakes in those entities?
Question: Patrick Davitt - Autonomous Research - Analyst
: Good afternoon, everyone. You mentioned the alternative wealth opportunity. So maybe update us on how distribution expansion
for the existing products is going if there are any newly filed products you could point to And then maybe medium to longer term,
help frame how many new products are in the laboratory to be launched later in the year and into 2026.
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