Financial Data and Key Metrics Changes - The company reported 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 which are among the highest in its history as a public company [4][6] - Management fees reached $1.1 billion, up 19% year over year, with a healthy growth of 16% excluding catch-up fees [4][5] - Total transaction and monitoring fees were $328 million, while capital markets fees were strong at $276 million [5][6] - Adjusted net income was $1.3 billion, reflecting an 8% increase year over year [7][8] Business Line Data and Key Metrics Changes - Insurance segment operating earnings were $305 million, with a run rate around $250 million [6] - Strategic Holdings operating earnings were $58 million for the quarter, significantly ahead of the previous year [6] - Realized performance and investment income totaled $935 million within the asset management segment [7] Market Data and Key Metrics Changes - The company raised $43 billion in capital during Q3, marking the second-highest fundraising quarter in its history [8][9] - Inflows from Global Atlantic within credit were $15 billion, significantly up year over year [9] - The private equity and real asset business lines raised $16 billion in capital during the quarter [10] Company Strategy and Development Direction - The company is evolving its insurance business to extend the duration of its book and leverage its global investment management capabilities [12][14] - There is a focus on raising third-party capital to grow Global Atlantic in a capital-efficient manner [13][14] - The company aims to achieve $4.50+ in fee-related earnings per share and $78 in after-tax adjusted net income per share by 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current monetization environment and the potential for future earnings growth [26][34] - The company noted that while some private equity firms may face challenges, it has learned from past experiences and is well-positioned for future performance [28][29] - The outlook for credit fundamentals remains attractive, with expectations for continued strong fundraising [31][32] Other Important Information - The company has approximately $17 billion of embedded gains across its asset management and strategic holdings, indicating strong portfolio performance [24][25] - A one-time charge related to the Asia Private Equity Fund is expected in Q4, which will impact net realized performance income [22][23] Q&A Session Summary Question: Can you summarize your international perspective, particularly regarding Asia? - Management noted increasing investor demand for Asia, with a broad understanding of opportunities in markets like Japan, India, and Southeast Asia, and expects Asia to grow faster than the rest of KKR [36][37][39] Question: What is the normalized ROE trajectory for the insurance business? - Management indicated that they expect to achieve an all-in ROE of over 20% over time, driven by the maturation of the alts portfolio and third-party capital contributions [54][55] Question: How do you see the capital markets business expanding from the GA side? - Management highlighted the potential for substantial growth in the capital markets business, estimating hundreds of millions of dollars in annual opportunities from Global Atlantic [60][61] Question: Can you elaborate on how changes in the insurance business enhance client partnerships? - Management emphasized that owning an insurance company provides a better understanding of client needs, allowing for improved service and competitive advantages [70]