Financial Data and Key Metrics Changes - The company generated record combined fee-related earnings (FRE) and spread-related earnings (SRE) of $5.9 billion, driving adjusted net income of $5.2 billion, up 14% year-over-year, or $8.38 per share [4] - FRE for the year was $2.5 billion, up 23% year-over-year, while SRE was $3.4 billion, normalized plus 9% year-over-year [6] - The company achieved record inflows of $228 billion, marking the third consecutive record year for both Athene and Asset Management [7] Business Line Data and Key Metrics Changes - The company originated over $305 billion of assets, up nearly 40% from the prior year, with $282 billion being debt [24] - Fee-related performance fees grew by 28% year-over-year, reflecting scaling of diversified wealth products and perpetual capital vehicles [35] - Athene's net invested assets grew by 18% year-over-year to $292 billion, with record inflows of $83 billion driven by retail and funding agreements [31] Market Data and Key Metrics Changes - The individual market saw more than $18 billion of inflows, with nine strategies exceeding $500 million in annual fundraising [9] - The global wealth business raised $18 billion, up nearly 50% year-over-year, indicating strong demand across multiple client types and geographies [30] - The company observed stable spreads quarter-over-quarter, generating excess spread of 290 basis points over treasuries for investment-grade origination [27] Company Strategy and Development Direction - The company is transitioning from serving one market to six markets, including individuals, insurance, and traditional asset managers, requiring different products and investments in technology [8] - The focus is on a total portfolio approach, allowing institutions to access private assets, which historically held 100% market share for public assets [10] - The company aims for 20%+ FRE growth in 2026, with a strong emphasis on maintaining quality while scaling operations [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing demand for retirement income and expects approximately $85 billion of inflows in 2026 [12] - The company anticipates 10% SRE growth in 2026, reaffirming a 10% average growth through 2029 [12] - Management emphasized the importance of a principal's mindset in navigating market complexities and generating excess returns [14] Other Important Information - The company plans to increase the annual per-share dividend by 10% from $2.04 to $2.25, reflecting a commitment to returning capital to shareholders [40] - The company has returned approximately $1.5 billion to shareholders via dividends and repurchases during the year [39] Q&A Session Summary Question: Implications of the ARI transaction on SRE - Management indicated that the ARI transaction helps de-risk the year and supports the goal of 10% SRE growth, but it should not be assumed to be additive [50] Question: Dynamics in the non-traded BDC space and ADS - Management noted that the philosophy of portfolio construction in ADS has resonated well, with net new assets increasing over $5 billion last year despite market turbulence [53] Question: Interaction with LPs regarding private allocations - Management expects increased dispersion among managers and a shift in dialogue towards better risk-adjusted returns, with volatility potentially accelerating changes in allocation strategies [60][70]