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]