Financial Data and Key Metrics Changes - The company reported fee-related earnings of $0.98 per share, total operating earnings of $1.33 per share, and adjusted net income of $1.18 per share, marking some of the highest figures in its history as a public company [3][4] - Management fees increased by 18% year-over-year to $996 million, driven by fundraising initiatives and deployment activities [4] - Fee-related performance revenues rose by 45% year-over-year to $54 million, attributed to performance allocation from the offshore infrastructure K Series vehicle [4][5] - Fee-related earnings (FRE) for the quarter totaled $887 million, with a FRE margin of 69%, reflecting a 33% increase in FRE per share over the last twelve months [5] Business Line Data and Key Metrics Changes - Insurance segment operating earnings were $278 million, slightly above the previous guidance of $250 million [5] - Strategic Holdings operating earnings reached $29 million, contributing to total operating earnings of $1.33 per share [5] - Realized performance income was $419 million, while realized investment income was $154 million, driven by public secondary sales and private transactions [7] Market Data and Key Metrics Changes - The private equity portfolio increased by 5% in the quarter and 13% over the last twelve months, while the infrastructure portfolio appreciated by 3% in the quarter and 14% over the same period [8] - The alternative credit composite rose by 19% over the last twelve months, indicating strong performance in credit markets [8] Company Strategy and Development Direction - The company continues to focus on long-term investments, deploying nearly $37 billion of capital year-to-date, with a significant portion outside the U.S. [10][11] - The alternative credit ecosystem, including asset-based finance (ABF), is viewed as a growing market with significant opportunities, with AUM in ABF increasing over 20% year-over-year to $75 billion [17] - The company announced an expansion into life sciences through the acquisition of Healthcare Royalty Partners, enhancing its healthcare investment capabilities [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 guidance shared last year, citing strong fundraising momentum and healthy portfolio performance [25] - The fundraising environment remains constructive, with $28 billion raised in Q2 and a target of over $300 billion for 2024-2026 [16][45] - The company is optimistic about the potential for 401(k) retirement reform to increase access to private market investments, viewing it as a long-term opportunity [78][82] Other Important Information - The company has a record of $9.2 billion in unrealized carried interest across its global portfolio, up approximately 30% from the previous year [13] - The firm is actively working on elongating and diversifying its liabilities, with a focus on third-party capital and alternative investments [20][73] Q&A Session Summary Question: Update on K Series credit and fundraising progress - Management highlighted that K Series AUM increased from $11 billion to $25 billion year-over-year, with strong progress in infrastructure and private equity [31][32] Question: Institutional fundraising dynamics - Management noted that institutional investors are returning to business as usual, with constructive discussions and a positive outlook for fundraising [45][46] Question: Opportunities in asset-based finance (ABF) - Management indicated that the environment is favorable for ABF, with companies looking to free up capital for strategic initiatives [55][56] Question: Performance of Global Atlantic - Management reported a solid quarter for Global Atlantic with $278 million in operating earnings, driven by variable investment income [71] Question: Impact of potential 401(k) retirement reform - Management expressed optimism about the reform, viewing it as a long-term opportunity to increase access to private market investments [78][82] Question: Industry evolution with AI and blockchain - Management is exploring how AI and blockchain can enhance productivity and create new investment opportunities [90][92]

Market Expansion - Goldman Sachs is negotiating to include its private-market investments in US retirement funds [1] - The move aims to broaden access to the Wall Street firm's products for more mainstream investors as regulations become more flexible [1]