Financial Data and Key Metrics Changes - Fundraising in Q2 2025 was $1.3 billion, contributing to a total of approximately $4.5 billion for the first half of the year, which is 75% of the original $6 billion target for 2025 [6][14] - Fee-related earnings for Q2 2025 were $46.1 million, reflecting an 8% sequential increase and a 17% year-over-year growth [6][29] - Total AUM reached $48.7 billion, with fee-earning AUM growing 6% sequentially and 20% year-over-year [7][11] - The company generated over $600 million in organic net inflows into fee-earning AUM in Q2 2025, totaling $1.3 billion year-to-date [7][11] Business Line Data and Key Metrics Changes - Fee-earning AUM rose to $37.2 billion, with a 20% year-over-year increase and a 6% sequential increase [11][25] - The company reported a 34% year-over-year reduction in redemptions, indicating improved organic growth [12] - Infrastructure fundraising in 2025 was approximately three times greater than in all of 2024, driven by strong demand for Infrastructure Fund V [15] Market Data and Key Metrics Changes - The company noted a shift in investor interest towards Latin America and Europe due to geopolitical uncertainties and high inflation concerns in the U.S. [17][20] - Local investors accounted for approximately 55% of fundraising in 2025, up from 68% in 2024 [21] Company Strategy and Development Direction - The company aims to achieve a full-year fundraising target of $6.3 billion to $6.6 billion, reflecting a 5% to 10% increase from the original target [6][22] - The strategy includes leveraging acquisitions to enhance fee-earning AUM, as demonstrated by the acquisition of seven listed REITs in Brazil [13][70] - The company is focusing on expanding its presence in Mexico, particularly in real estate and credit sectors, while maintaining a cautious approach to growth [37][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 fee-related earnings target of $200 million to $225 million, with a strong start to the year [22][30] - The company highlighted the resilience of its business model, which is designed to grow regardless of macroeconomic conditions [12][20] - Management noted that the current high interest rate environment is driving demand for credit and infrastructure investments [12][18] Other Important Information - The company reported a net accrued performance fee balance of $394 million, which rose approximately 7% from the previous quarter [9] - The effective tax rate for Q2 2025 was 8%, with expectations to hover around 10% annually [31] Q&A Session Summary Question: Expansion in Mexico - The company sees Mexico as an attractive long-term market and is looking for local partners in real estate, credit, and infrastructure [36][37] - A small acquisition of a Mexican real estate fund was made, with plans to expand into logistics real estate [38][39] Question: Deployment Pipeline in Infrastructure - The company has a significant pipeline in infrastructure, particularly in Brazil and Colombia, focusing on toll roads and energy projects [45][46] Question: Fundraising Guidance Clarification - The increase in fundraising guidance is separate from the REIT acquisitions, with strong interest from Asian, Middle Eastern, and local investors [52][54] - The company is experiencing a shift in capital allocation towards Latin America due to geopolitical uncertainties [56] Question: Timeline for REIT Consolidation - The acquisition of REITs is already closed, and the numbers will be reflected in Q3 results [70]