Fourth Quarter & Full Year 2025 Results Earnings Presentation 12 February 2026 Important Disclosures IMPORTANT NOTICES The inclusion of references to Ridgepost Capital, Inc. ("Ridgepost Capital" or the "Company") in this presentation is for information purposes only as the holding company of various subsidiaries. Ridgepost Capital does not offer investment advisory services and this presentation is neither an offer of any investment products nor an offer of advisory services by Ridgepost Capital. By accepti ...

Core Insights - KKR & Co. Inc. reported a third-quarter 2025 adjusted net income per share of $1.41, exceeding the Zacks Consensus Estimate of $1.29 and increasing from $1.38 in the prior-year quarter [1][9] - The company's shares rose nearly 2.2% in pre-market trading following the positive results [1] - The growth in assets under management (AUM) and transaction fees in the capital markets business were key drivers of the results, although rising expenses posed a challenge [1] Financial Performance - Net income attributable to KKR on a GAAP basis was $859.9 million, up from $600.6 million in the same quarter last year [2] - Total segment revenues reached $1.46 billion, a 3.4% increase year-over-year, driven by higher management fees and transaction-related revenues, surpassing the Zacks Consensus Estimate by 6.9% [3] - Total segment expenses rose by 3.9% to $431.9 million [3] - Total operating earnings grew 12% year-over-year to $1.4 billion, while fee-related earnings increased by 3% to $1 billion [5] Assets Under Management - As of September 30, 2025, total AUM increased by 16% year-over-year to $723 billion, with fee-paying AUM also rising by 16% to $585 billion [4] Strategic Outlook - The company is expected to continue capitalizing on lucrative investment opportunities due to its effective fundraising capabilities [6] - Significant growth in fee-related and total operating earnings is enhancing the company's financial position, although elevated expenses from global expansion and a challenging operating environment are concerns [6]

Financial Data and Key Metrics Changes - As of the end of Q3 2025, the company's assets under management (AUM) exceeded $50 billion, representing a growth of over 3.5 times since the IPO in 2021 [4] - Year-to-date organic fundraising reached $6 billion, with a strong Q3 contribution of $1.5 billion, positioning the company to exceed its full-year target of $6.6 billion [5][11] - Fee-earning AUM grew to $38.8 billion, reflecting a 4% sequential increase and a 14% year-over-year growth [8][19] - Fee-related earnings (FRE) for Q3 2025 were reported at $49.5 million, up 22% year-over-year and 7% sequentially, with a per-share increase of 8% sequentially and 19% year-over-year [8][23] - Distributable earnings reached $46.9 million, or $0.30 per share, marking a 31% year-over-year increase [9][28] Business Line Data and Key Metrics Changes - The infrastructure and credit businesses led the organic fundraising efforts, contributing significantly to the overall growth [5][12] - The infrastructure fund 5 raised $2.9 billion, making it the largest dedicated infrastructure fund in Latin America, with a 40% increase compared to the previous vintage [12] - The credit business surpassed total 2024 fundraising by nearly 15%, raising $1.6 billion year-to-date [13] Market Data and Key Metrics Changes - The company noted a trend of global investors seeking exposure to non-U.S. markets due to the depreciation of the U.S. dollar, which is expected to support fundraising efforts [11] - The company is experiencing increased interest in infrastructure investments in Latin America, benefiting from its position as a leading infrastructure investor in the region [12] Company Strategy and Development Direction - The company aims to diversify and grow its business both organically and inorganically, with a focus on expanding its investment strategies and geographic footprint [17][36] - The company plans to resume acquisition efforts in late 2025 or 2026 after a pause to integrate previous acquisitions and demonstrate organic growth [34][35] - The company is particularly interested in credit and real estate asset classes for future acquisitions, with a focus on expanding its U.S. presence [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the high end of the 2025 fundraising target and anticipates a strong performance in Q4, driven by incentive fees and increased management fees from fundraising [39][41] - The company expects to generate approximately $15 million in performance-related earnings in Q4 2025, with potential for more realizations from its infrastructure fund [10][49] - The management highlighted a favorable regulatory environment in Brazil for data centers, which could lead to significant investment opportunities [42][45] Other Important Information - The company has a share repurchase program authorized for up to 3 million shares, with a total return swap in place for 1.5 million shares [9][28] - The effective tax rate for Q3 was 3.3%, with expectations for it to hover around 10% annually in the coming years [27] Q&A Session Summary Question: How is the company thinking about the pacing of capital deployment with $3.2 billion in pending fee-earning AUM? - Management indicated that most of the pending fee-earning AUM will be deployed over the next 12 to 18 months, primarily in infrastructure investments [31][32] Question: What is the company's strategy for inorganic growth moving forward? - Management stated that they plan to restart acquisition efforts in late 2025 or 2026, focusing on credit and real estate asset classes, with a particular interest in expanding in the U.S. [34][36] Question: Can you provide an update on the FRE guidance for this year? - Management expects to surpass the $200 million FRE target, primarily driven by anticipated incentive fees and increased management fees from fundraising [39][41] Question: What is the mechanism behind the total return swap mentioned in the call? - Management explained that the total return swap involves purchasing shares on behalf of the company, which will be settled by mid-2026 [28]

Core Insights - Blackstone Inc. has spent the last five years transforming its core business into a dominant Fee-Related Earnings (FRE) generating engine, positioning itself for long-term growth beyond traditional macro consensus [1] Company Strategy - The firm is focused on delivering independent, actionable research on U.S.-listed companies and market forces, emphasizing clarity over noise in earnings events and corporate strategy shifts [1] Research Philosophy - Avalon Capital Research aims to provide high-quality analysis accessible to both professional and retail investors, avoiding jargon and bias, and grounding insights in data [1]

Core Insights - The company is on track to achieve platform adjusted EBITDA profitability in the second half of 2025 [1][3] - The second quarter results reflect a positive step towards this goal, with a focus on hospitality, multifamily, and multi-tenant industrial real estate [3][6] - Recent legislative changes, specifically the passage of the BBB, have made the opportunity zone program permanent, benefiting the company's investment strategies [3] Financial Highlights - Platform revenue for Q2 2025 was $4.1 million, slightly down from $4.2 million in Q2 2024 [6] - The platform net loss was $4.9 million, or $3.87 per diluted share, compared to a net loss of $4.6 million, or $4.25 per diluted share in the prior year [6] - Platform adjusted EBITDA loss improved to $0.1 million from a loss of $2.5 million in the same quarter last year [6] Business Updates - Key milestones include the approval of the Canyon Village redevelopment project, which will convert a distressed office building into a 376-unit rental multifamily residential building [7] - The joint venture project, PURE Pickleball & Padel™, received design review approval, positioning it for a building permit [7] - A successful refinancing of $22.5 million for the Doubletree by Hilton Hotel in Tucson was completed [7] Consolidated Financial Results - Total consolidated revenue decreased to $5.1 million from $8.2 million, primarily due to the deconsolidation of several entities in 2024 [7] - Consolidated net loss attributable to Caliber was $5.3 million, or $4.15 per diluted share, compared to a net loss of $4.7 million, or $4.34 per diluted share in the previous year [7] - Consolidated adjusted EBITDA showed improvement, reaching $0.1 million compared to a loss of $1.0 million in Q2 2024 [7] Assets Under Management - As of June 30, 2025, the fair value of assets under management (AUM) was $803.2 million, up from $794.9 million at the end of 2024 [23][24] - The company reported a total managed capital of $498.6 million, reflecting an increase from $492.5 million at the end of 2024 [25][26]