Cvc Capital Partners Plc

Good morning and welcome to the cvc capital partners plc 2026 half year results call please be aware that this call is being recorded and all participants are currently in listen only mode i would like to hand over to bruce hamilton to begin the meeting bruce please go ahead thank you operator and good morning everyone today we'll update you on our performance for the first six months of the year

We have up to 60 minutes for the call. We'll begin with the presentation and after that we'll open the floor to questions. Presenting today are Rob Lucas, CEO, Rob Squire, Head of Clients and Product Solutions, Peter Rutland, President and Fred Watt, CFO. Rob, over to you.

Thanks Bruce and good morning everyone. Welcome to our half year results call. Starting on slide two, you can see the first half of 2026 was a period of real momentum. is strong performance across every part of our business. Once again, we've delivered record realisations at highly attractive returns, a track record that remains second to none. This is translating into fundraising momentum across all four platforms and each client channel, driving growth in fee-paying AUM, greater diversification and still stronger financial performance. First, Let me provide a bit more detail on our operating performance. Realizations continued at record levels, up 79% LTM, and these continue to be delivered at highly attractive reserves. Value creation saw further increases to 11% over the last 12 months, reflecting the benefit of our sourcing and value creation engines. In the first half of this year alone, value creation for PE and infra was 6%, Deployment continued at a consistent pace of €26 billion over the last 12 months to June and with a strong pipeline going forward. And we saw broad-based fundraising momentum right across the business, with gross inflows of €11 billion, again showing the strength of our diversified platform. That operating momentum translates directly into our financial performance. The growth of fee-paying AUM up 9% year-on-year, fee-related revenues followed that trend, growing 9% as well. Combined with strong performance-related earnings, first-half EBITDA has increased by 12%, and adjusted EPS is up 11% year-on-year. And our strong, predictable cash generation supports a dividend per share of 12% year-on-year. This is alongside our ongoing share buyback program. Craig will take us through the financials fully in a few minutes. Looking in more detail at realizations, our record last 12 months really does mark us out as an industry leader and follows a record year in 2024 and again in 2025. Realizations in the first half of 2026 were up 19%. driven by exit strength right across our platform. These include notable exits from our Europe Americas Fund 7 and 8, such as Natogy, the Spanish-based energy company, and Reyna, our MedTech eye care company, as well as from Asia and infrastructure, as highlighted on the slide. For the full year, we expect realisations broadly similar to last year, These record realizations feed directly into our track record of creating exceptional returns for our clients and delivering DPI that truly differentiates us. Over the past four and a half years, we've returned 33% more capital than we have called from our private equity platform. And within that, 40% more than we have called from our Europe Americas franchise, something that is quite unique across our peer group. In an environment where our clients are ever more focused on DPI, this is central to our high confidence in our future fundraising, not least Fund 10, which will be launching in six months' time. Our returns over this period are equally strong, 3.6 times gross multiple of money and 26% gross IRR across our private equity exits, or four times and 29% across Europe America. But how are we able to consistently deliver these returns and realizations? For me, three factors stand out. First, the upper mid-market size of our investments gives us flexibility. We aren't reliant on the IPO markets to exit. Second, our prudent portfolio marks, which allow us to exit consistently at an uplift. Thirdly, and very importantly, Our ability to drive strong alpha during our ownership, creating high-performing, valuable businesses. On the topic of investment performance, we're seeing very positive operating momentum across our portfolio companies. Over the last 12 months, we have delivered EBITDA growth of 13% across all of our private equity funds and 14% across Europe America's Fund 8. And importantly, this growth is broad-based, as these funds are diversified with typically 30 to 40 investments in Europe-Americas funds. It's also worth noting that value creation includes the markdowns to our limited software exposure, in line with changes in public market valuations in the first quarter. With this value creation, a number of our funds have seen strong progress over the last six months, with Europe America's Fund 8, for example, increasing from 1.5 times from 1.3 times six months ago. As I've said previously, the importance of AI for portfolio companies can't be overemphasized, and we are putting material resources into preparing ours for this enormous technological change. AI will have disruptive effects, but can also be massively beneficial for those who really embrace it This is why we are very much focused on accelerating the adoption of regenerative AI across our portfolio companies to drive further value creation, including by using partnerships with all the major providers. In our investment process, we are also leveraging AI platforms to enhance knowledge sharing and support investment decision making, including for due diligence. We were early adopters taking our whole senior team out to Singularity University on the West Coast in early 2020 to better understand the significance of large language models. Since then, we have fully embedded the AI opportunity and risk lens into our investment committee decisions. More broadly, the strength of our network shows in the breadth of our capital deployment across the platform and the way our teams work together. In the first half of the year, We acquired the animal nutrition and health business of PSM, an investment made possible by the combined efforts of our Benelux, Dak and Chemicals teams. In sports, media and entertainment, where we are a world leader, we acquired the world's largest online chess platform, chess.com, and made an investment in Equine Network, which is the leading North American equestrian sports league. Both investments combine the expertise of our SME sector team with our US platform. In the first half, this led to a deployment pace that remained consistent with a 3-4 year investment cycle, running at a similar level to the prior year, but our healthy pipeline gives us real confidence as we look forward. We have built CBC into one of the world's broadest and most diversified private markets leaders. This breadth is a huge competitive advantage as clients consolidate relationships and are looking for partners who can serve them across multiple strategies, channels and geographies. As you can see on the left of this slide, our four platforms are all in sizeable and very attractive markets. private equity, credit, secondaries and infrastructure. Within each of those platforms, our unparalleled global network of 30 offices and our specialist teams provide the deepest origination funnel in our industry. This is complemented by a highly aligned, very distinctive compensation model and a business that is fully integrated as one CBC. As you can see on the other side of the slide, we are proud to have the highest quality client base and relationships. Our consistent track record of our performance through the cycle has helped us create deep, long-standing relationships with the top LPs in the world. At the same time, our fundraising capabilities continue to broaden and expand across the insurance and private wealth channels. All this means we're extremely well positioned for growth, benefiting from the trends at work in our industry. We're gaining market share on the back of our consistent outperformance and investment appetite for Europe. We're demonstrating strong growth in credit, infrastructure and secondaries. In each case, we're using the power of the CBC network to keep scaling these platforms and broaden them further. including into adjacent products and client segments. In private equity, we are confident in future growth, driven by Fund 10, which we expect to be the same size or larger than its predecessor, which is still the largest private equity fund ever raised. This all underpins our previously guided double-digit TAGA in fee-paying AUM to 2028, and a clear path to a substantial step-up in our earnings in 2028 as we activate Fund10. With that, I'll hand over to Rob to take you through fundraising. Thanks, Rob.

Thank you, Rob, and good morning, everyone. I'll start my session with an update on our closed-end institutional capital raising. Slide 11 shows that our strong execution in this channel continued in the first half with momentum across our entire platform here at CBC. We held two highly successful final closings during the period. Firstly, our CLO Equity Fund 4 with commitments of $1 billion, a 25% increase on the predecessor Vintage 3, empowering $15 billion of CLO issuance. Secondly, we closed our maiden European middle market buyout fund, CDC Catalyst, with aggregate commitments of $3.4 billion. This total is 70% above our initial 2 billion target and offers yet one more data point on the strong institutional demand for European private equities. In our secondaries business, Soft6 has closed 9.3 billion at the half year and will hold a final close there in the coming weeks with more capital. On the back of this success, we feel well positioned to now broaden our secondary platform into new adjacencies. including the imminent launch of credit secondaries and over time, the launch of infrastructure secondaries. And on infrastructure, we closed 5.2 billion euros of aggregate commitments at the half year into our Value Add Fund 4 and our Deer Fund 8. Combining this capital with further closings already held in July and other IC approvals received, we're now over 75% complete on our combined 8 billion euro target When taken as a whole, we see this execution demonstrating CBC's capacity to raise institutional capital at scale as we broaden our platform. The support and the partnership that we're seeing day in and day out from our long-standing client relationships provides all of us with real confidence in our Pipeline 27 and our Fund 10 raise specifically. Pre-marketing for that process is now well underway and is very much in line with expectations. CBC's outstanding investment and realization metrics, combined with our proven underwriting model for that specific process, underpin our confidence in delivering a fund at the same size or larger than its predecessor. Now turning to slide 12, and as Rob referenced, we see CBC's platform continuing to gain share in each of our channels. And I want to quickly detail the structural drivers that I'm seeing firsthand First, as we referenced on prior calls, we see the vast majority of our clients continuing to concentrate their capital with fewer and fewer GPs, focusing both their time and their energy on relationships that can span multiple asset classes. Secondly, we see an ever-growing emphasis on partnering with managers that can demonstrate a proven track record of generating alpha Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Plc Given CBC's leadership position in European private equity, credit, secondaries and infrastructure, we feel very well placed to be the partner of choice for our clients. Now Rob referenced several of these trends as emerging or indeed accelerating since the start of 2022 and as we show on the right-hand side, during that time period, we've generated in excess of 100 billion euros of growth inflows onto our platform. While the aggregate scale of that capital is freezing and is set to jump again with our Fund 10 process, what's most encouraging is the acceleration in the year-on-year cadence of these flows as we've broadened our platform. Specifically, the growth inflows, secondaries, infrastructure, and the credit. And I surely expect this treatment will amplify further when we onboard the marathon products in the coming months and years ahead. So lastly from me on slide 13 we cover private wealth and I'm pleased to report that we've continued to make good progress in the channel with around 7 billion euros of aggregate value now in our evergreen structures. This total is more than four times the level of just a year ago and is 90% up on the values which I provided at the four year results. During the first half, we accepted over 2.6 billion euros in subscriptions, and we had gross redemptions of around 80 million euros, implying net inflows to our evergreen products of around 2.5 billion euros. As a reminder, we see these vehicles as an important long-term opportunity for CBC to accept different forms of capital alongside our long-established strength in the traditional closed-end format. Aside from private wealth, we believe these structures will be the conduit for defined contribution retirement plans to gain exposure to private markets, including, over time, the emerging 401k opportunity in the United States. I'm pleased to report from a standing start just over two years ago, we now have active evergreen offerings in each of private equity, credit, secondaries, and infrastructure, with multiple vehicles tailored In conclusion, as is the case with our closed-end funds, provided that we maintain strong performance, I have every confidence that the long-term trajectory of these vehicles will be incredibly positive as clients in this maturing area increasingly seek to align their capital with high-performance managers. So with that, I'll now hand over to Peter to provide an update on the developments that we're seeing in credit and insurance.

Thank you, Rob, and good morning, everybody. We have significantly scaled our credit platform in recent years to build market-leading positions in both private and liquid credit. Today, we are a top three manager in European private credit and the number one CLO manager in Europe. The quality of our underwriting is reflected in our outstanding performance track record with very low defaults and loss rates. and annualized default rates of just 0.2% since inception in European direct lending and 0.2% loss rate in CLOs, well below industry averages. In direct lending, this is partly because European private credit markets have a more favorable dynamic in terms of capital supply and demand than in the US. But in addition, like in private equity, portfolio diversification in credits is a key driver of this outperformance. with, for example, software exposure well below industry averages. This performance has driven strong growth and we have scaled our European direct lending program from €1 billion to over €10 billion in only two vintages and a 30% CAGR in our credit fee paying AUM since 2020. We also see substantial future growth potential. We have continued to invest in our product offering Notably, the acquisition of Marathon, which closed on July 1st, brings us market-leading performance in a number of attractive sub-sectors, especially in the US market, including the fast-growing asset-based lending, structured credit, and real estate credit, with minimal exposure to the US direct lending market. This significantly expands UBC's addressable market opportunity across all our routes to market. Indeed, With this broadened product suite and our market-leading performance, we are confident that we can continue to scale in the institutional channel. In private wealth, as just touched upon by Ron, we see significant further growth potential from the €3.5 billion we've reached in our CBC credit vehicle in just two years. And in insurance, the addition of Marathon's capabilities will allow us to further accelerate our growth in that segment. Indeed, the size of the insurance opportunity is considerable, and we are well positioned to win. Insurers need to improve the risk-adjusted returns on the asset side of their balance sheets to meet the competition from insurers backed by alternative asset managers. We have already raised €18 billion over the past five years, and given the focus on the insurance channel, we're now bringing together our insurance expertise more closely with our credit expertise into one credit and insurance organisation. Our credit investing capabilities, together with our experience in insurance private equity and technical experience from our global insurance solutions team, means that we can create solutions that are highly attractive to insurers. This broadening of conversations we can have with insurance clients is illustrated by the $3.5 billion strategic partnership we entered into with AIG at the beginning of the year.

And with that, I'll hand you over to Fred to take you through the financials. Thank you, Peter, and good morning, everyone. Starting with slide 17, and fee paying AUM, which as we can see grew 9% year-on-year to €153 billion. As Rob noted earlier, that growth was led by credit, secondaries, and infrastructure, which together were up 19% year-on-year. Private equity was in line with the June 25 levels, reflecting, on the one hand, strong realizations, but offset by fee-paying inflows with the completion of Catalyst and also the positive momentum we've seen in Fiverr Wealth. Moving to slide 18 and turning to the P&L. Fee-related revenues were up 9% versus the first half of 25, in line with fee-paying AUM growth at €771 million. As you can see on the slide, fee-related revenues included €22 million of catch-up fees, relating mainly to the capital closed in H1 for capitalist and soft stakes. Fee-related earnings, up 11% to €442 million, an FRE margin of 57%, also benefited to some extent from those catch-up fees. Performance-related earnings of €110 million were up 15%, tracking in line with our expectations and also tracking our prior guidance of the year. Taking both FRE and TRE together EBITDA increased 12% to 554 million euros and finally profit after tax was 434 million euros up 10% with the effect of tax rate excluding carried interest at around 20.5% higher than last year but within the range of 19 to 21 Turning to slide 19 and costs. Total operating expenses drew 7% year-on-year reflecting our focus on cost discipline alongside investment in our growth areas such as private wealth and insurance. For the full year, we continue to expect total cost growth to be slightly below 10% with higher growth in the second half due to the phasing of hirings. And consistent with what we said in March, we expect total cost growth to The basic message here is that we are reaffirming all guidance set out for the full year results in March. Firstly, the future carry potential embedded in funds already raised remains unchanged at €5 billion, with carried interest recognised in the first half, offset by carrier new capital closed in the period. This will flow through the P&L over the coming years and is based on our key funds achieving the midpoint of their target ranges. Secondly, on the outlook for PRE, we are also reaffirming the guidance that we set out at our full year results, including for 2026. The strong realisations we have delivered in the first half gives us increasing visibility and confidence in delivering this. Our unchanged expectation is for aggregate PRE of around 600 to 700 million euros over 2026 and 2027, with the most likely path still being 2026 and around the 2029 level, followed by a first step up in 2027 with the expected initial carry recognition of Asia 5. Finally, we continue to expect that a further substantial build will then follow across 2028 to 2029, as Funday recognises its initial IFRS carry given the IPO perimeter and IFRS accounting effects we have discussed previously. Lastly, turning to our balance sheet and cash generation on slide 21. As of the 30th of June 2026, we had a healthy balance sheet position with gross cash of €645 million and a long-term debt of approximately €1.9 billion. This reflects the issuance of $550 million of US private placement notes and is adjusted for the cash used for the closing of the acquisition of Marathon, which took place on July 1. Strong operating cash flow in the first half supported the payment of the 2025 final dividend of €250 million, as well as €194 million of share buyback completed out of the announced programme of up to €350 million. The net debt leverage Well within our maximum leverage guidance of two types. The second half of the year will see continued strong operational cash flow, supporting the payment of a $275 million interim dividend plus further progress in the Shared Buyback Program. With that, I will hand back to Rob for some concluding remarks. Thanks Fred.

So, to conclude, what excites me the most It's not just the strength of the first-class performance. It's that every structural trend shaping private markets today, client consolidation, demand for alpha, insurance capital, private wealth, European allocations, and product diversification, they all play directly to how we have positioned CBC and how we've built our strengths. Our market share gains continue. The strong double-digit growth in EBITDA, EPS, and dividends in the first half is underpinned by fundraising momentum, including the $3.4 billion raised for Catalyst and the $9.3 billion raised so far for SoftSoups. You've heard today about our strong growth in private wealth and in insurance, with Marathon materially expanding our offerings. At the same time, we remain firmly focused on our core institutional clients. We see continued growth in private equity, with increasing visibility and confidence in our ability to deliver Fund 10 at the same size or larger than Fund 9, alongside continued fast scaling in credit, secondaries and infrastructure. This all underpins our previously guided double-digit CAGR in fee-paying AUM for 2028 and a clear path to a substantial step-up in our earnings in 2028 as we activate Fund10. Thank you very much. Now, just before I hand over to Bruce to start the Q&A, you'll have seen me announce in May that John Hurrican will join CBC as CFO in September and succeed Fred, who will retire after almost 20 years with the firm. Just like to take a moment to recognize Fred for his exceptional contribution to CBC over nearly two decades. Fred joined in 2007 and has played a central role in helping us build CBC into the global business we are today, including of course our IPO in 2024. On a personal basis, Fred has been a trusted partner and colleague to me and to many others over the years and externally as a trusted contact for many of you on this call. On behalf of us all, thank you Fred for everything you've done and best wishes for a happy retirement. Bruce, over to you.

Thank you Rob, Peter and Fred. Now let's open it up for questions. Please try and keep to two questions per person. I'll break them.

Thank you. If you would like to ask a question verbally, Please either use the raise hand function at the bottom of your Zoom screen or if you have dialed in, please press star 5 on your telephone keypad. If you wish to withdraw your question, simply lower your hand or press star 5 again to cancel. If you would like to ask a written question, please use the Q&A box on your Zoom screen. There will now be a brief pause while we register the questions. Our first question comes from Hubert Ion with Bank of America. Please unmute and ask your question.

Hi. Thank you for taking my questions. But first, I'd like to thank Brett. Thanks, Brett, for all the help since the IPO and all the best in the future. My two questions, firstly, on wealth. Any indications of slowing demand near the return for your wealth products? Do you see any change in terms of your goals or launches? because of the more challenging backdrop within the evergreen sector. That's the first question. Second question is on credit. How do you see deployment opportunities now? You see more now just given the sector dislocation or is the lack of sponsor activity slowing your deployment activity? Thank you.

Thanks, Stephen. Rob, would you like to take the first question? Lisa, would you like to speak for the second?

Sure. Good morning, Hubert. Obviously, I don't have a crystal ball. And so what I can tell you is that we're really pleased with the momentum that we're seeing. We had net inflows into all of our evergreen products in Q1 and in Q2. And so we feel incredibly well positioned. And I've said on prior calls, we're really seeing that differentiation in terms of that European nexus play through in terms of the reception that we're getting, not just sort of in the rest of the world space, but also specifically within the U.S. world space. So that's how I'd answer that, Peter.

Thanks, Rob.

Yes, Hubert.

As noted by some of our peers, there has been a muted level of activity in the first half, partly driven by overall industry new deal activity being lower. We see this more as a temporary phenomenon, and from our point of view, our underwriting remains extremely disciplined,

Our next question comes from Nicholas Herman with City. Please unmute and ask your question.

Hello, can you hear me? Hello?

Can you hear you now?

Ah, okay. I think I'm not unmuting my line. Perfect. Yeah, thanks for the presentation. I'm taking more questions. Two for me as well, please. Firstly, on insurance, outside of the US players, I'm not really aware of such high integration between your insurance and credit team, so it feels like that's quite... Plc Plc Plc Plc And then the second one, just a quick one, on Fund 10. Just trying to conceptualize the guidance on Fund 10 to be at least as big as the last fund, given the clearly very strong DPI, were Fund 10 to be the same size as Fund 9. What level of re-up rate would that broadly equate to? Thank you.

Brilliant. Thanks very much, Nick. You can just take the first question, and Rob, Thanks Nicholas for the question and I'm not sure whether others have integrated quite as closely as we have but certainly we think that to be successful with insurance clients you do need this combination of the right products that we talked about in the presentation as well as bringing an overlay of the expertise of the specifics that insurance pound sheets need to have and absolutely we do have big ambitions for the insurance group to market and We hope and expect that the AIG partnership will not be the only strategic one that we will have in a few years' time.

Great. And in terms of Frontend, Nicholas, look, we will announce the target size, the cover amount, at our annual investor meeting in London in the second week of September. And then in terms of your question around sort of re-up rates, as you know, we have a very proven underwriting process for that. that fund family where we re-underwrite every single line item over the course of the preceding 18 months. And so we're very confident that we will achieve industry-leading, quite frankly, re-upgrades there. And I think that with this renewed appetite for Europe, I do actually think that the existing clients will probably contribute more into Fund 10 relative to where in Fund 9. So we feel quite positive, again, at this stage.

That's very helpful, could you just remind us how much you think Clarence contributed to Fund 9 in that case please?

I'm not sure we discovered that Nicholas.

No worries, thanks a lot.

Our next question comes from Arnold Gibler with BNP Paribas. Please unmute and ask your question.

Yeah, good morning and best wishes to Fred. Two questions please. First, could I ask about Fund 9 that's currently deployed at 65%. Could you talk about the investment pipeline that's currently active for the also checking in the pipeline for that fund and specifically at what level, can you remind us what level investment level does that fund need to be for for the fund to be activated? The second question is on SNAs. So you've done really well in developing rapidly a wealth channel. I suppose perhaps the next step is to take the secondaries and the board based full platform approach to small institutions globally to try and sell diversified services. investment fund to small institutions. I'm just wondering if that's something in the plan and what sort of developments should we expect there? Thank you.

Thanks Arno. Let me talk to Fund 9 and the investment pipeline and also sort of activation levels. So the pipeline is good at the moment but the world out there is quite volatile and so the flow rate can be quite variable. We're just very fortunate to have the people on the ground in the local markets, to have the local network and we generally see opportunities and consider those opportunities ahead of others in the market, particularly within of course the European context. um so um we will we will see how that pipeline flows through we're being very selective is the point here and so um although we are currently 65 deployed i think we still are looking at that sort of three to four years um uh investment cadence in terms of uh the the amount of amount of time um and so hence why in terms of activation we're still looking at the first half of 2028 to do that. In terms of the activation level, we'd normally do that generally around 95% level of deployment out of the prior fund. In terms of the SMAs, I don't know whether, Rob, you're happy to talk to that. You're very happy to.

I am now. Okay I think as I said to Hubert's question you know we're very very happy with the momentum that we're experiencing with the reception that we're getting within the wealth channel more broadly defined. I think if your question was around smaller institutions I think at this stage we've got plenty of you know a runway in front of us within the private wealth channel and there's to invest in our closed end structures already. I think over time, as I referenced, I really see these vehicles as being the linchpin to the DCE, the Defined Contribution Retirement space, you know, already seeing that to a certain degree in Europe with LTIP and LPAP, and so if that broadens the aperture and part of that is smaller institutions, then that's great.

Thanks. Next question for you, Bill Fraser.

As a reminder, if you would like to ask a question verbally, Please either use the raise hand function at the bottom of your Zoom screen, or if you have dialed in, please press star five on your telephone keypad. We will take our next question from Oliver Caruthers with Goldman Sachs. Please unmute and ask your question.

Hi there, Oliver Caruthers from Goldman Sachs. I've got two questions, please. The first question on EU DL5, you're an expert lending fund. On slide 11, you're showing a 5 billion euro target for this fund. I think this is the first time you've disclosed this. Obviously, that excludes leverage, co-invest, and SMAs. I think you'd previously presented a target on a slightly different basis, inclusive of these numbers back at your credit CMD back in October last year. But could you maybe give this 5 billion, I guess keeping AUM kind of context in the I guess the momentum you're seeing with LPs and also the deployment landscape for European direct lending. We've just seen quite a few pretty strong fear raises in this space. I'm just interested on your views on how your franchise is going there. And then the second question, are your press releases in the last few months, we've seen quite a few exit announcements, particularly in fund seven in Europe Americas. Could you help us just understand how they will mechanically flow through to your performance fees as we think about the second half of this year, or maybe how much of that has already come through in the first half numbers that you've printed today. Thank you.

Right. Thanks very much indeed, Oliver. Rob, do you want to just take the first part and then Fred, perhaps, second part?

Sure. Hi, all of them. So yeah, the DL5 number that we've got on slide 11 That is an unlevered equity target. Obviously, a reasonable proportion for that total is levered one to one. And then on top of that, again, as you rightly point out, you have a series of large SMAs that sit alongside that. And so if you recall, you know, our EUDL4 was very successful at north of 10 billion. And again, I think on this race, we certainly hope that we can conclude it larger than the predecessor.

Hi Oliver, on the performance phase and realizations, there's one or two that we did announce that are still being through regulatory approval, for example. So, which is why we're really guiding to unchanged in total, but more second-half weighted in terms of GRE. That's really in line with what we're expecting. So, nothing material either way, but in line with our expectations.

In terms of the mechanics,

So there are some announcements we make where we sign the Act of Realisation but then of course it's waiting for regulatory approval in which case under IFRS we're not able to recognise that from a PRE perspective. So that's fairly consistent with prior views but we're still not changing our view in terms of timing here or our total for 2026.

And of course the 50% allocation through to the PLC within Our next question comes from Julian Dobrovolski with ABN AMRO. Your line is now open.

Moim gentlemen and Fred first of all wish you a really good retirement indeed um the question first on the uh management fee rate um which can reference the realizations uh which have been shrinking the fees you can give them in the mix but while the credit secondary is an info now feeding 50 percent of the asset base and we also know that the strategies carry low fee rates in the PE especially the credits and secondary so my question is what should we think about the blended management fee rate margin over the next two three years in the in the atomic shift away from the PE strategy and the other one really quick um the fundraising how sustainable do you think is the 57% SRE margin in H1 so how much of that do you think we can actually sustain in the second half given the fact that the opex is going to accelerate

Let me take both of these, Julian. Thank you. In terms of the fee rate, I think the blended rate we're still seeing as we look forward is around 1% of the AUM. You're right, credit is lower fees, but equally secondaries and intra are higher than the group average of 1%. So we're still seeing that overall blend moving in a consistent path towards that maintaining 1% on average fee rate. In terms of your margin point, it's really partly around Our next question comes from Michael Sanderson with Barclays

Please unmute and ask your question.

Good morning. Thank you for taking the question. Just a couple of quick ones, please. First of all, you mentioned the progress in MOEX. I was just interested if you were able to break that down at all between sort of the earnings growth realizations you've seen and whether sort of multiples you've applied because clearly where we are at the end of H126 is nicely higher than where we are at the end of FY25 so just interested if there's any more granularity you're willing to share on that second thing was Europe America is obviously by its name there are the opportunity to invest in two major areas are you having any sort of in the early conversations you're having around re-ups is there any sort of discussion about how the allocation of Fund 10 might change or not versus prior ventures or are you I mean I know it's all a long way off but just interested to know whether there's a demand from investors that you're going to spend more in any in either of the individual geographies thanks very much and thank you Fred for your help thanks thanks Michael let me just take the second of your questions there and then maybe Fred you could just give a little bit of a breakdown in terms of the marks just in terms of

Europe Americas I mean we as you know we invest very bottom up and so it all depends on where we see the very best opportunities Michael in terms of how we approach it having said that we are putting 35 to 40 investments into a into a Europe Americas fund and generally speaking the exposure to the to The Americas within that has been in the sort of 15 to 20% region, something like that. And I think we probably see that at a sort of similar level. There's no doubt that there has been increased investor appetite for Europe that we've seen over recent months. And that's really, really come through. and so and certainly we see the ability to drive alpha within the European environment as particularly compelling at the moment but it all depends on where we see the very best opportunities and that's what will dictate but I would have thought generally around that sort of 15-20%

and on your point Michael so yeah most of the uplift is coming from real earnings growth so you see that in slide 7 where we've set out the even and revenue growth in Europe and America in particular so the vast majority is coming from that but we're also seeing some uplift from realizations as well and we are realizing that above the mark that we were holding assets in December and so that continues and so that's a contributor to the biggest element

Great, thank you. I think that we're now at no further questions. So thank you all for your participation and we look forward to speaking again soon. Thank you. Thanks very much indeed everybody.

This concludes today's call. Thank you for your participation. You may now disconnect.