Private Market Growth & Dynamics - Private markets are opening to the public, with Apollo Global at the center of this shift, viewing private markets as the next great investment frontier [1] - Apollo's assets under management grew from roughly $40 billion in 2008 to $840 billion today, outpacing the growth of companies like Google, Amazon, and Microsoft, driven by fundamental factors reshaping private markets [3][4] - The number of public companies has decreased from 8,000 to 4,000, and the S&P 500 is heavily concentrated, with 10 stocks representing 40% of the index, raising concerns about diversification [7][8] - Active management struggles to outperform the index, with 90% of equity market participants failing to do so for 20 years, leading to a shift towards passive investing and ETFs [9][10] Alternative Investments & Investor Access - Alternatives, traditionally defined as private equity, venture capital, and hedge funds, are now viewed as any alternative to publicly traded stocks and bonds [12][13] - Individual investors could eventually match institutional investors in market size, with family offices already having over 50% of their investments in private markets [16][17] - Retail investors are expected to participate in private markets indirectly through traditional asset management firms, leading to a convergence of public and private markets [20] - Criticisms of alternative investments include lack of transparency, illiquidity, high fees, and potentially decreasing returns as more money flows in [22] Private Credit Market - The private credit market is estimated to be $1.5 trillion if defined as direct lending and leveraged lending below investment grade, but $40 trillion if including investment grade [44] - Banks are heavily involved in private credit, as everything on a bank balance sheet, such as loans to customers and companies, is essentially private credit [36] - Long-dated investments, such as those in energy transition, manufacturing, and infrastructure, are increasingly being funded outside the banking system by institutional investors [41] Liquidity & Risk - The perception that private is risky and public is safe is challenged, suggesting both are risky and safe, with the primary difference being liquidity [60][61] - In the investment-grade private market, investors working with Apollo can access 100% of their money every 30 days [49] - Public markets may not be as liquid as perceived, with it taking 5 days to sell an investment-grade corporate bond [55] Investment Advice & Future Trends - The value of advice is increasing as investors are asked to consider new investment options, requiring advisors to provide guidance on navigating the complexities of public and private markets [67] - Guaranteed lifetime income is expected to become an important choice for individuals within their 401(k) plans, addressing the retirement income deficit [73][76] - The availability of capital in private markets is allowing companies, including AI and defense companies, to stay private longer, investing for the long term without being driven by quarterly earnings [81][82]

Core Viewpoint - Brookfield Asset Management is experiencing robust growth and is well-positioned as a leading alternative investment manager with over $1 trillion in assets under management, attracting more investors seeking diversification into alternative assets [1]. Group 1: Fee-Based Income - Approximately $563 billion of Brookfield's $1 trillion in assets generates fees, producing $2.7 billion in fee-related earnings over the past year [3]. - The company returns most of its fee-related income to shareholders through a dividend with a current yield close to 3% [3]. Group 2: Growth Projections - Brookfield anticipates more than doubling its fee-bearing capital to $1.1 trillion by the end of the decade, driven by increased investor demand for alternatives, new fund launches, and expansion into new capital sources [4]. - The company expects a 17% compound annual growth rate in fee-related earnings per share through the decade, with distributable earnings per share projected to rise at 18% annually [5]. Group 3: Dividend Growth - With rapidly rising earnings, Brookfield plans to increase its dividend by more than 15% per year, positioning the company for strong total returns over the next five years [6].

Investment Trends - Nigeria is actively seeking alternative investments, aligning with a global trend of increased inflows into private credit [1] Global Market - The global trend indicates a rise in investments in private credit [1]

Alternative Investment Trends - Family offices are the fastest-growing market for alternative and private assets [2] - The number of family offices with exposure to alternative investments has increased by over 500% since 2016 [2] - There are now over 4,000 family offices with alternative investments, up from 651 in 2016 [3][4] Investment Preferences - Family offices are favoring private credit this year [4] - 39% of family offices plan to add or make new investments in private credit and private debt this year [4] - 29% of family offices plan to add or make investments in private equity [4] - Private credit is still a small share of the total family office portfolios at about 5% [5] - AI is the number one investment theme right now for family offices [8] Concerns and Challenges - Family offices are warning of higher fees and lower returns in private credit [5] - 72% of family offices say high fees are the biggest challenge to investing in private markets [6]

Investment Performance & Risk - Yield Street, a startup offering retail investors access to alternative investments, faces scrutiny due to underperforming assets [1][3] - Out of 30 deals reviewed, 23 are on the "watch list," indicating potential or actual default [1][4] - Investors have put $370 million into these funds, with $78 million already defaulted [4] - Real estate performance has plummeted from 94% to approximately 2% over a ten-year period [8] Company Response & Market Perception - Yield Street attributes the issues to higher interest rates in 2022 [6] - The company's tagline, "invest like the 1%," is questioned, with some suggesting Yield Street may be offering deals that professional investors have passed over [7][9] - The situation raises concerns about the push to include alternative investments in 401(k)s and retirement accounts [10][11] Alternative Investment Considerations - Private markets offer less liquidity and transparency compared to public markets [11] - The potential for higher returns is the trade-off for illiquidity and lack of transparency, but Yield Street's performance has not justified this trade-off [12]

Alternative Investments in 401k Plans - The executive order aims to facilitate access to alternative investments like real estate, cryptocurrency, or private assets within 401k plans [1] - Private assets refer to privately held companies, which constitute the majority of businesses in America [1][2] Financial Planning Considerations - Individuals should assess their current 401k plan, contribution levels, and company matching contributions before considering alternative investments [2][3] - It's crucial to understand financial goals, desired retirement age, and estimated retirement income needs [3] - Ideally, retirement contributions should range from 15% to 20% of gross pay [4] - Maximizing company matching contributions is essential as it represents "free money" [4] Prudent Investment Approach - Before exploring alternative investments, ensure a thorough understanding of the existing 401k plan's contents and contribution strategy [4] - Verify whether the current plan adequately supports the achievement of long-term financial goals [4]

Core Viewpoint - Vinci Compass Investments Ltd. reported strong financial results for the second quarter of 2025, highlighting solid fundraising momentum and strategic initiatives across its platform [2]. Financial Performance - Fee Related Earnings (FRE) for the second quarter of 2025 were R$65.2 million, equating to R$1.03 per common share [4]. - Adjusted Distributable Earnings for the same period were R$75.8 million, or R$1.20 per common share [4]. Dividends - The company declared a quarterly dividend of US$0.15 per share, payable on September 9, 2025, to record holders as of August 25, 2025 [3]. Company Overview - Vinci Compass is a leading provider of alternative investments and global solutions in Latin America, with nearly three decades of experience and operations in eleven offices across Latin America and the US [6]. - As of June 2025, the company managed R$304 billion in assets under management and advisory [6].

Financial Highlights - Adjusted operating income was $50 million, or $1.01 per share, for the second quarter of 2025[9] - The company insured $10 billion of new business par in the second quarter of 2025, the largest second-quarter amount in a decade[9] - The company generated $64 million of new business production (PVP) in the second quarter of 2025[9] - Pretax adjusted operating income from asset management was $5 million in the second quarter of 2025[9] - Pretax adjusted operating income from the alternative investment portfolio was $16 million in the second quarter of 2025[9] - Capital returned to shareholders in the second quarter of 2025 was $150 million, including share repurchases of $131 million (1.5 million shares) and dividends of $19 million[9] - Adjusted operating income was $212 million, or $4.21 per share, in the first half of 2025, a 23% increase compared to the first half of 2024[11] - The company insured $15 billion of new business par in the first half of 2025, the largest amount of first-half par insured in a decade[15] - The company generated $103 million of PVP in the first half of 2025[15] - The company repurchased nearly 3 million shares at a total cost of $251 million in the first half of 2025, representing nearly 6% of shares outstanding on December 31, 2024[15]

Investment & Expansion - Manulife 同意收购 Comvest 的多数股权 [1] - 这项收购将创建一个价值 184 亿美元（$18.4 billion）的私募信贷平台 [1] - 该保险公司正在加速扩张另类投资业务 [1]

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $2.14 per share, a decrease from $2.56 per share in the prior year period [9] - The annualized core operating return on equity was reported despite tempered overall results from alternative investments [6] - Net investment income, excluding alternatives, increased by 10% year over year due to higher interest rates [6][10] - The company returned over $100 million to shareholders through dividends and share repurchases [7][12] Business Line Data and Key Metrics Changes - Specialty Property and Casualty Insurance businesses generated a combined ratio of 93.1%, up from 90.5% in the prior year [15] - Gross and net written premiums in the Specialty Property and Casualty group were up 107% year over year, with a 65% increase when excluding the crop business [16] - The Specialty Casualty Group achieved a combined ratio of 93.9%, 4.8 points higher than the previous year, with gross and net written premiums increasing by 42% [20] - The Specialty Financial Group reported a combined ratio of 86.1, an improvement from 89.7 in the prior year, with gross and net written premiums up 15% and 12% respectively [22] Market Data and Key Metrics Changes - Multifamily construction starts are down approximately 20% year over year, indicating a tightening supply which is expected to drive higher rental and occupancy rates [12] - The overall renewal rate increases for the Property and Casualty Group were approximately 6%, with a 7% increase excluding workers' compensation [17] Company Strategy and Development Direction - The company continues to focus on disciplined operating philosophy and capital management to create long-term value for shareholders [13][23] - AFG is optimistic about the prospects of attractive returns from its alternative investment portfolio, expecting annual returns averaging 10% or better [12] - The company is evaluating opportunities for acquisitions, special dividends, or share repurchases as it generates significant excess capital [13] Management's Comments on Operating Environment and Future Outlook - Management noted a favorable pricing environment and increased exposures contributing to growth in Specialty Property and Casualty businesses [15] - The company remains cautious about social inflation impacts and has taken steps to non-renew certain accounts in its social services businesses [34] - Management expressed optimism regarding the crop business, citing better conditions compared to the previous year, although it is still early to predict profitability [56] Other Important Information - The company has a $16 billion investment portfolio, with approximately two-thirds invested in fixed maturities [10] - The annualized return on alternative investments was approximately 1.2% for the second quarter, down from 5.1% in the prior year [11] Q&A Session Summary Question: Insights on lender placed business within Specialty Financial - Management indicated that the lender placed property business is significant and tends to grow in a weak economy, with opportunities arising from market disruptions [27][28] Question: Comments on social inflation and non-renewals - Management confirmed that they have completed non-renewals in housing accounts and are nearing completion in daycare accounts, focusing on profitable segments [34] Question: Positioning in inland marine and trade credit business - Management noted growth opportunities in ocean marine and trade credit, although tariffs may impact the business [43][48] Question: Crop profitability outlook - Management stated it is too early to determine if the year will be above average for crop profitability, but conditions appear favorable [56] Question: Workers' compensation pricing environment - Management reported a slight decrease in overall workers' compensation pricing but noted a firming market in California [62] Question: Pricing and rate adequacy in professional lines - Management expressed cautious optimism about stabilizing pricing in public D&O business, with overall rates remaining flat [68]