Financial Highlights - KKR reported record Fee Related Earnings (FRE) of $1 billion ($1.15/adj share) for the third quarter, a 3% increase year-over-year[19] - FRE reached $3.6 billion ($3.99/adj share) in the Last Twelve Months (LTM), up 16% year-over-year[19] - Total Operating Earnings (TOE) were $1.4 billion ($1.55/adj share) for the quarter, a 12% increase year-over-year[19] - Adjusted Net Income (ANI) was $1.3 billion ($1.41/adj share) for the quarter, up 8% year-over-year[19] - KKR's ANI reached $4.6 billion ($5.07/adj share) in the LTM, a 17% increase year-over-year[19] Assets Under Management (AUM) - AUM totaled $723 billion, a 16% increase year-over-year[19, 35] - Fee Paying Assets Under Management (FPAUM) reached $585 billion, a 16% increase year-over-year[19, 35] - Perpetual Capital amounted to $309 billion, a 19% increase year-over-year, representing 43% of AUM and 51% of FPAUM[33, 35] Capital Activity - New Capital Raised reached $43 billion in the quarter, the second-highest quarterly figure ever reported by KKR[7, 19] - Capital Invested totaled $26 billion in the quarter, marking KKR's most active investment quarter in history[19] - KKR has a record $126 billion of dry powder (uncalled commitments)[7, 38]

Financial Performance - Adjusted operating income reached $336 million, a 17% increase per share compared to the same period in 2024[15] - The company earned $124 million of adjusted operating income in the third quarter, a 6% increase on a per share basis above the third quarter 2024 amount[11] - The alternative investment portfolio generated $112 million of pre-tax adjusted operating income[15] New Business and Capital Management - $25 billion of new business par was insured, the highest amount in the first nine months in a decade[15] - $9 billion of new business par was insured in the third quarter, the largest third-quarter amount in a decade[11, 18] - $194 million of PVP was generated[15, 18] - Over 4 million shares were repurchased at a cost of $369 million, representing nearly 9% of shares outstanding on December 31, 2024[15] Portfolio and Resources - The total investment portfolio plus cash stands at $89 billion[28, 64] - Claims-paying resources are $101 billion, resulting in a net par outstanding to claims-paying resources ratio of 27:1[28] - Net par outstanding is $2749 billion, with U S public finance accounting for $2121 billion, non-U S public finance for $513 billion, and global structured finance for $115 billion[28]

Core Insights - Charles Schwab Corp. is expanding its services to provide millionaire clients with access to potential investment opportunities in private companies prior to their public offerings, reflecting a growing interest in alternative investments [1] Group 1: Company Strategy - The company aims to tap into the increasing demand for alternative investments among high-net-worth individuals [1] - By offering access to private companies, Charles Schwab Corp. seeks to enhance its value proposition for affluent clients [1] Group 2: Market Trends - There is a notable rise in investor interest for alternative investments, indicating a shift in investment strategies among wealthy individuals [1] - The move aligns with broader market trends where private equity and venture capital are becoming more attractive to investors [1]

Core Insights - Nearly 20% of American women with over $1 million in assets do not plan to retire, significantly higher than the 11% of men in the same financial bracket [1] Investment Goals - The primary investment goal for women is maintaining their spending, with 48% citing this motivation, followed closely by 47% aiming to preserve their wealth [2] - Additionally, 44% of women are focused on planning for a comfortable retirement, saving an average of 17% of their income each month, with an average income of just under $550,000 per year [3] Investment Strategies - Female investors show a preference for equities at 40%, which is lower than the 45% allocation by male investors; women also hold more cash (21% vs 19%) and fixed income (25% vs 23%) [4] - Performance is the primary characteristic women look for in investments, but they are also more risk-averse, with 92% not owning alternative investments, and 34% considering them too risky [5] Perception of Risk - Women perceive cryptocurrency as the least reliable asset, with only 22% classifying U.S. stocks as "high risk," indicating a cautious approach to emerging asset classes [6] Future Trends - As wealth accumulates, there is a growing need for diversification beyond traditional markets, with women expected to reshape investment flows due to the "Great Wealth Transfer" [7]

Core Insights - Billionaire Izzy Englander has sold a 15% stake in Millennium Management, valuing the firm at approximately $14 billion [1][2][7] - The sale involved a $2 billion equity stake and was executed by Goldman Sachs Asset Management's Petershill unit [2][3] - Millennium Management has a strong track record, averaging a 14% annual return since its inception in 1989 and managing $79 billion in assets with over 6,400 employees [4][6] Company Overview - Millennium Management was founded in 1989 by Izzy Englander and has grown to be one of the largest hedge funds globally [4] - The firm has 330 investment teams and has only lost money once in 35 years, indicating a stable capital base [4] - The recent minority stake sale is part of Millennium's strategy to ensure its longevity as a financial institution [6] Market Context - The valuation of Millennium at $14 billion is significant compared to other hedge funds, such as Man Group with a market cap of approximately $3.2 billion and Sculptor Capital Management valued at just over $700 million when taken private [5]

RWA Tokenization Market Overview - The tokenization market is experiencing significant growth and attracting global interest, with senior and engaged attendees participating in related events [1][2] - The industry anticipates that tokenization will become a mainstream part of the global financial world, although its current adoption is surprisingly limited [2] - Tokenization is expected to drive a shift from traditional 60/40 investment strategies towards alternative asset classes [3] Future Outlook - The market for Real World Assets (RWA) is taking off, gaining attention from traditional financial institutions and investors [4] - Within 5 years, RWA is projected to become a pinnacle investment vehicle, synonymous with trading other assets [4] - Education initiatives are crucial for market participants to understand the assets they are trading [3] Partnerships and Initiatives - The company is actively working on multiple projects in the RWA space [4] - A partnership with Mantra indicates a strategic move to capitalize on the growing tokenization market [3]

Financial Performance - Blue Owl's AUM reached $295.6 billion, a 26% increase since September 30, 2024[3, 27] - Fee-Related Earnings (FRE) for the last twelve months were $1420.2 million, up 19% from the prior year[33, 37] - Distributable Earnings (DE) for the last twelve months were $1241.7 million, a 15% increase compared to the previous year[27, 33, 37] - The company announced an annual dividend of $0.90 per Class A Share for 2025, a 25% increase from 2024[27] Platform Growth - Credit platform AUM increased by 18% to $152.1 billion since September 30, 2024[20, 47] - Real Assets platform AUM significantly grew by 69% to $74.7 billion since September 30, 2024, driven by the IPI Acquisition and capital raised[20, 51] - GP Strategic Capital platform AUM increased by 11% to $68.8 billion since September 30, 2024[20, 55] Fundraising Activities - New capital commitments raised in the quarter totaled $14.4 billion, including $11.2 billion in new equity capital[27, 43] - Total equity fundraise for the quarter was $11.2 billion, with $5.6 billion in Credit, $3.0 billion in Real Assets, and $2.7 billion in GP Strategic Capital[43]

Group 1: Market Trends and Investment Strategies - The article discusses the historical difficulty in identifying market bubbles in real-time, emphasizing the role of crowd behavior in driving prices to unsustainable levels [1] - Financial advisors are encouraged to act as behavioral coaches rather than mere forecasters, highlighting the importance of personal resilience during market volatility [2] - The oil market is currently oversupplied, with global inventories at near four-year highs, which is limiting the impact of sanctions on Russia [3] - The traditional 60/40 portfolio may not be sufficient to protect retirement savings from long-term stagnation in investment returns, referred to as the "lost decade" [4] Group 2: Alternative Investments and Fundraising - Franklin Templeton is focusing on expanding its outsourced chief investment officer (OCIO) business by catering to the demand for customized portfolio management from wealth and family office clients [5] - Alternative investment fundraising has reached approximately $148.4 billion year-to-date, with public non-traded business development companies leading the way at $34.5 billion [6] - There are concerns that retail investors may not fully understand the complexities and risks associated with alternative investment products being marketed to them [7] Group 3: Infrastructure and Real Estate Investments - McKinsey's research indicates that global data centers will require $6.7 trillion in investment to meet the growing demand for computing power, with an additional $5.2 trillion needed for AI-related infrastructure by 2030 [8] - Investment in qualified opportunity zone funds (QOFs) saw a significant decline in Q3 2025, raising only $436.8 million, as investors show caution ahead of a projected "dead period" for opportunity zone investments [9] - Apollo Global Management has appointed Bert Crouch as head of its real estate equity division, following its acquisition of Bridge Investment Group, which nearly doubled its real estate assets under management to $110 billion [10][2] Group 4: Leadership Changes in Financial Firms - Goldman Sachs Asset Management has appointed David Blank from UBS as the head of sales for separately managed accounts and portfolio solutions, indicating a strategic move to enhance its offerings in this area [11]

Core Insights - Envestnet has launched professionally managed model portfolios featuring interval funds on its WealthTech platform to meet the increasing demand for alternative investments among high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients [1][2] - The new offerings aim to provide seamless access to institutional-grade solutions for advisors, integrating semi-liquid and liquid strategies for easier allocation to alternatives [2][3] Product Offerings - The Franklin Templeton Multi-Manager HNW Portfolios include five risk-based options with a strategic 10% allocation to alternatives, designed to enhance income potential and simplify access to private markets [3] - BlackRock's Multi-Asset Income with Private Markets Models are structured as Fund Strategist Portfolios with a minimum investment of $25,000, blending public and private credit along with dividend-focused equities across three risk-based allocations [4] Operational Considerations - Envestnet has established operational protocols for advisors regarding Limited Trade Window (LTW) funds, emphasizing the importance of observing redemption windows and managing liquidation responsibilities [5][6] - The company highlights the necessity for wealth management firms to sign agreements with Envestnet to enable LTW fund capabilities, reflecting the growing trend of advisors allocating to alternative investments [5] Market Context - The shift towards alternative investments is driven by the shrinking public markets and the need for diversified portfolios, as noted by Envestnet's Co-CIO Dana D'Auria [2] - With over half of alternatives held by HNW and affluent investors, the demand for expanded capabilities and access on Envestnet's platform is critical for advisors [5]

Core Insights - There is a growing consumer interest in alternative investments, prompting financial advisors to emphasize the importance of finding appropriate investment methods [1][2] - Alternative investments encompass a wide range of assets beyond traditional cash, stocks, and bonds, including private-market assets, real estate, commodities, and cryptocurrencies [1] - Younger investors are increasingly disillusioned with conventional investments, leading to a trend termed "financial nihilism," with a significant portion of Americans expressing interest in alternative assets [3][4] Investment Trends - U.S.-based ETFs have seen over $1 trillion in inflows this year, with a notable portion directed towards gold and crypto ETFs, indicating a shift in investment preferences [2] - A survey by Charles Schwab revealed that two-thirds of Americans believe investing success requires diversifying beyond traditional assets, with 45% interested in alternatives like private equity and hedge funds [3][4] Regulatory Changes - Recent executive orders and SEC changes are facilitating access to alternative investments, particularly in workplace retirement plans and the launch of spot crypto ETFs [5] Investment Strategies - Financial advisors recommend using ETFs to gain exposure to alternative investments, as they can mitigate complexities such as liquidity issues associated with direct investments [6][7] - It is advised to limit alternative investments to 10%-15% of a large portfolio and under 5% for smaller portfolios, with traditional stocks and bonds still being preferable for major financial goals [8] Historical Performance - Historical data shows that investing in a diversified basket of stocks, such as the S&P 500, has proven to be highly profitable over the long term, with significant returns on investments made decades ago [10][11]