KKR & Co. Inc.

Ladies and gentlemen, thank you for standing by, and welcome to KKR's third quarter 2025 earnings conference call. During today's presentation, all parties will be on a listen-only mode. Following management's prepared remarks, the conference will be open for questions. If you'd like to ask a question at that time, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Craig Larson.

Thank you. You may begin. Craig Larson Thank you, operator.

Good morning, everyone, and welcome to our third quarter 2025 earnings call. This morning, as usual, I'm joined by Rob Lewin, our chief financial officer, and Scott Nuttall, our co-chief executive officer. We would like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our press release, which is available on the Investor Center section at KKR.com. And as a reminder, we report our segment numbers on an adjusted share basis. This call will also contain forward-looking statements which do not guarantee future events or performance. please refer to our earnings release as well as our SEC filings for cautionary factors about these statements. I'll begin this morning with our results for the third quarter. As you likely would have already seen through our press release, we had a strong Q3. We're pleased to be reporting fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share. All of these figures are among the highest we've reported in our history as a public company. Going into the P&L in a little more detail, management fees and management fee growth continues to be strong. For Q3, management fees were $1.1 billion. That's up 19% year over year, driven by both our fundraising success really across all of our asset classes alongside continued capital deployment. Catch-up fees within the management fee line were more elevated this quarter, given the strength of our fundraising. They came in at a little over $40 million. So excluding catch-up fees, management fee growth on a year-over-year basis is a healthy 16%. Total transaction and monitoring fees were $328 million in the quarter. Capital markets fees were quite strong at $276 million. driven by activity across private equity, infrastructure, core private equity, as well as our work on behalf of our third-party clients. Fee-related performance revenues in the quarter were $73 million. That figures up nearly 30% year-over-year, with a growth here driven by the performance as well as the scaling at our K-infra vehicle. And in terms of expenses, Fee-related compensation was right at the midpoint of our guided range, which, as a reminder, is 17.5%. Other operating expenses for the quarter came in at $176 million. So in total, fee-related earnings were $1 billion, or the $1.15 per share figure that I mentioned earlier, a record figure for us. Insurance segment operating earnings were $305 million this quarter. The run rate here is still at that $250 million level, plus or minus. as there was a $41 million benefit this quarter from GA's annual actuarial assumption review process. Strategic holdings operating earnings were $58 million for the quarter. And on a year-to-date basis here, they're meaningfully ahead of where we were a year ago. And as we head into 2026, we're tracking nicely towards our expected $350-plus million of net dividends. So in aggregate, Total operating earnings, which represent the more recurring component of our earnings streams, were $1.55 per share, that's a record quarter, and 17% ahead of just last quarter. Moving on to investing earnings within our asset management segment, realized performance and investment income totaled $935 million, and we had $70 million of net realized investment income within our strategic holding segment. So over $1 billion of monetization activity on a combined basis, a healthy level which in our view highlights both the strength as well as the maturity of our portfolio. And of note in Q3, to give a little color, almost half of realized carried interest came from our private equity business in Asia. So in total, looking on a net basis, investing earnings after compensation were $306 million in Q3. After interest expense and taxes, adjusted net income was $1.3 billion. or $1.41 per share. That's up 8% year over year, so relative to the third quarter of 2024. And stepping back for a moment, we're pleased with the progress and the momentum you're seeing beyond just this 90-day period. Looking over the last 12 months, management fees, fee-related earnings, and adjusted net income are all at record levels for KKR over any 12-month period in our history. and are up 16%, 16%, and 17%, respectively, compared to the 12-month period ended one year ago. Turning now to some of the key operating metrics for us from the quarter. And let me start with capital raising. In the third quarter, we raised $43 billion of capital for the second highest fundraising quarter in our history, with an incremental $3 billion of capital coming in this quarter with the closing of our acquisition of Healthcare Royalty Partners. Organic new capital raised across our credit platform comprised roughly 60% of the $43 billion raised this quarter, as we're seeing strong momentum in our asset-based finance business, as well as our insurance business more broadly. Inflows from Global Atlantic within credit were $15 billion. That's up considerably year over year, with $6 billion of that related to particularly strong funding agreement issuance, as well as the Japan Post Insurance Strategic Partnership. In addition to this activity at GA, third-party asset-based finance and private IG represented over $5 billion of new capital raised in the quarter. And this included five separate private IG ABF mandates, four of which are with clients that are new to our credit platform. And our forward pipeline here remains quite strong. Looking across the entirety of our credit platform, we've raised $55 billion year to date, and that's compared to $56 billion over all of 2024. Suffice to say, 2025 is on track to be a record capital raising year for our credit business. Our private equity and real asset business lines together raised $16 billion of capital in the quarter across a number of strategies. and that includes additional closes in our flagship North America's private equity and our global infrastructure funds. And inflows from our private wealth efforts continue to be robust. In the third quarter, our K-Series suite of products brought in $4.1 billion. That is 20% higher compared to just last quarter and is 80% above the new Cavalier's figure from one year ago. Turning to deployment, We invested $26 billion of capital in Q3 with activity really broad-based across geographies and asset classes. And looking over the last 12 months, we've invested $85 billion. That's up 12% compared to the prior LTM period. And with a record $126 billion of dry powder available, we remain incredibly well-positioned to build our portfolio for the future. Our teams continue to find creative ways to put capital work across asset classes. Now turning to investment performance, page 10 of the earnings release details the continued performance we're seeing across asset classes this quarter and in the LTM. Overall, our portfolios remain well positioned, and given our disciplined approach around investment pacing and linear deployment, we have roughly $17 billion of embedded gains that sit on our balance sheet across our asset management and strategic holdings, which is at or near record levels for us. And this is despite the healthy monetization activity that you've seen in the quarter. And with that, I'm pleased to turn the call over to Rob.