Core Viewpoint - KKR & Co. Inc. has announced a strategic partnership with HMC Capital, involving an investment of up to $603 million to support renewable energy projects in Australia, particularly focusing on the Energy Transition Platform [1][2] Investment Details - The investment will enhance HMC's existing 652MW operational assets and its 5.7GW battery energy storage and wind development pipeline [1] - This partnership aims to scale the Platform and identify growth opportunities, with a focus on advancing Australia's transition to net zero carbon by 2050 [2] Strategic Alignment - KKR's investment aligns with its broader strategy, having committed over $44 billion to climate and environmental sustainability investments since 2010 [2] Earnings Forecast - Investors are anticipating the next earnings report on April 30, 2026, with expectations for growth in earnings per share (EPS) and revenue [3] Analyst Consensus - The stock carries a Buy Rating with an average price target of $146.57, supported by a strong consensus and an expected earnings growth of 14%, indicating a potential 55% upside to analyst targets [4] Recent Stock Performance - KKR shares were down 1.34% at $100.50 during premarket trading, with an EPS estimate of $1.31 (up from $1.15 YoY) and a revenue estimate of $1.96 billion (up from $1.77 billion YoY) [5] - The stock is trading at a premium P/E of 42.4x, reflecting its valuation status [5] - Recent analyst actions include a downgrade to Hold by TD Cowen with a lowered target of $131.00, while UBS maintains a Buy rating with a target of $168.00, and Barclays has an Overweight rating with a target of $159.00 [5]

Carlyle posts fourth-quarter results that surpassed Wall Street estimates https://t.co/nbN1kUvlyx ...

Core Insights - StepStone reported adjusted net income (ANI) of $80 million, or $0.65 per share, an increase from $53 million, or $0.44 per share, in the prior-year quarter, attributed to higher fee-related and performance-related earnings [1] - The company generated fee-related earnings (FRE) of $89 million, up 20% year-over-year, with a core FRE of $88 million, reflecting a 35% increase year-over-year [2] - Despite a GAAP net loss of $123 million, or $1.55 per share, due to accounting adjustments, operational results showed strong profitability [3][7] Financial Performance - StepStone's fiscal third-quarter 2026 earnings call highlighted record core fee-related earnings and significant incentive fees from the Spring Evergreen Fund [4] - The Spring Evergreen Fund produced over $200 million in gross incentive fees, contributing to a NAV of $5.5 billion, with performance described as 39% over the year [6][8] - Gross realized performance fees were reported at $253 million, including $47 million of realized carried interest [9] Fundraising and AUM - The company achieved record gross AUM additions of over $8 billion in the quarter and $34 billion over the last 12 months, with private wealth subscriptions exceeding $2.2 billion [5][11] - Fee-earning assets plus undeployed fee-earning capital (UFEC) grew to over $171 billion, marking the strongest one-year growth in the company's history [14] - Approximately two-thirds of inflows came from outside North America, with Asia and Europe identified as key contributors [12] Growth Drivers - StepStone's private wealth platform expanded to $15 billion, with consistent quarterly subscriptions exceeding $2 billion [13] - The firm is actively fundraising for various funds, including private equity co-investment and secondaries, with notable quarterly commingled fund closes expected [15][16] Expense Management - Adjusted cash-based compensation was reported at $107 million, with general and administrative expenses rising to $40 million due to events like the StepStone 360 conference [17] Portfolio Positioning - The company estimates that about 11% of total AUM is in software investments, with a focus on diversification as a defense against disruption [20][21] - Net accrued carry ended the quarter at $875 million, with a significant portion tied to older programs [22]

Core Insights - StepStone Group Inc. reported a revenue of $494.5 million for the quarter ended December 2025, marking a 102.8% increase year-over-year and a surprise of +21.44% over the Zacks Consensus Estimate of $407.21 million [1] - The earnings per share (EPS) for the quarter was $0.65, compared to $0.44 in the same quarter last year, resulting in an EPS surprise of +9.24% against the consensus estimate of $0.60 [1] Financial Performance Metrics - Fee-Earning AUM (FEAUM) for Focused Commingled Funds reached $58.22 billion, exceeding the average estimate of $57.10 billion from three analysts [4] - Total Fee-Earning AUM (FEAUM) was reported at $138.55 billion, slightly above the average estimate of $137.13 billion [4] - FEAUM for Separately Managed Accounts (SMAs) stood at $80.33 billion, compared to the average estimate of $80.03 billion [4] - Assets Under Advisement (AUA) totaled $591.34 billion, surpassing the average estimate of $566.66 billion from two analysts [4] - Total Assets Under Management (AUM) was $219.80 billion, exceeding the average estimate of $215.68 billion [4] Revenue Breakdown - Total revenues from management and advisory fees, net, were $239.93 million, compared to the estimated $235.51 million [4] - Total revenues from performance fees (incentive fees) reached $207.95 million, significantly higher than the estimated $132.14 million [4] - Total performance fees amounted to $346.58 million, compared to the average estimate of $169.45 million [4] - Performance fees from carried interest allocations (unrealized) were reported at $101.99 million, against an average estimate of -$5.35 million [4] - Total carried interest allocations reached $148.69 million, exceeding the estimated $37.31 million [4] - Realized performance fees from carried interest allocations were $46.7 million, compared to the average estimate of $42.67 million [4] Stock Performance - Over the past month, StepStone Group's shares have returned -7.3%, while the Zacks S&P 500 composite has seen a +0.5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $123 million or $1.55 per share for Q3 2026, primarily due to the change in fair value of the buy-in of StepStone Private Wealth profits and interests [3] - Fee-related earnings were $89 million, up 20% year-over-year, with a FRE margin of 37% [4] - Adjusted net income for the quarter was $80 million or $0.65 per share, an increase from $53 million or $0.44 per share in the same quarter last year [4][22] Business Line Data and Key Metrics Changes - Core fee-related earnings, excluding retroactive fees, were $88 million, up 35% compared to the prior year quarter [4] - The company generated gross AUM additions of over $8 billion in the quarter and over $34 billion for the calendar year, marking the best 12-month period of fundraising ever [6][13] - In private wealth, the platform grew to $15 billion with over $2.2 billion in new subscriptions for the quarter [8][16] Market Data and Key Metrics Changes - Approximately two-thirds of inflows came from outside North America, with strong fundraising in Asia and Europe [13][60] - The company reported a retention rate on managed accounts of over 90%, with reups growing on average by nearly 30% [14] Company Strategy and Development Direction - The company is focused on diversifying its fundraising across commercial structures, geographies, and strategies to ensure continued growth through market cycles [6][7] - StepStone is positioning itself to capitalize on the evolution of artificial intelligence, investing across various asset classes and capital structures [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the earnings trajectory, citing an improving capital market environment that may yield stronger realizations [5] - The company anticipates that AI will create significant value, while also presenting risks and opportunities [11] Other Important Information - The company plans to pay out a supplemental dividend at the end of each fiscal year, subject to board approval based on performance-related revenues [21] - The net accrued carry finished the quarter at $875 million, up 4% from the previous quarter [22] Q&A Session Summary Question: Exposure to software companies across the portfolio - Management highlighted the diversified approach to private markets investing, emphasizing that not all software companies are equal and that portfolio construction is a key defense against disruptions [26][28] Question: Growth in private wealth business - Management noted that they are in the early stages of building syndicates for new funds and expect to see growth in distribution over the coming year [32][33] Question: Managing inflows in Spring fund - Management stated that the venture and growth team continues to see strong opportunities, allowing for effective management of inflows without needing to limit new assets [36] Question: Expectations for next vintages of funds - Management tempered expectations for modest growth in fund sizes, emphasizing the importance of matching fundraising to the size of the opportunity [38] Question: Performance attribution in Spring fund - Management explained that the majority of performance is driven by direct secondaries rather than discounts, highlighting the proactive approach in sourcing opportunities [44][46]

Company Overview - Rubicon Associates is led by a Chartered Financial Analyst with over 20 years of experience in investment management, focusing on fixed income and preferred stock portfolios, as well as asset allocation and macro portfolios [1] - The principal has managed nearly $7 billion in credit investments and oversaw research and trading activities in the credit market [1] - The firm has also managed a short-duration fund worth $20 billion and served as Chief Strategist at a wealth management firm [1] Research and Advisory - Rubicon Associates has provided analysis and investment advice for both public and private companies globally [1] - The firm has written for various financial platforms, including Seeking Alpha, Learn Bonds, and TheStreet.com, and has advised institutional and private investors [1]

KKR & Co. has agreed to acquire sports and secondaries investor Arctos Partners in a $1.4 billion deal. The firm has a stake in several American professional sports franchises, so each league has to approve the buyout. KKR CFO Robert Lewin and Arctos CEO Ian Charles speak to Bloomberg's Dani Burger. -------- More on Bloomberg Television and Markets Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9 Visit http://www ...

Core Viewpoint - Investors are evaluating Invesco (IVZ) and Carlyle Group (CG) to determine which stock represents a better undervalued investment opportunity [1] Group 1: Zacks Rank and Earnings Outlook - Invesco has a Zacks Rank of 1 (Strong Buy), while Carlyle Group has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank indicates that IVZ has a positive earnings estimate revision trend, suggesting an improving earnings outlook [3] Group 2: Valuation Metrics - Invesco's forward P/E ratio is 10.07, compared to Carlyle Group's forward P/E of 12.56 [5] - Invesco has a PEG ratio of 0.48, while Carlyle Group's PEG ratio is 1.04, indicating that IVZ is expected to grow earnings at a better rate relative to its price [5] - Invesco's P/B ratio is 0.92, significantly lower than Carlyle Group's P/B of 3.09, suggesting that IVZ is undervalued compared to its book value [6] Group 3: Overall Value Assessment - Based on various valuation metrics, Invesco holds a Value grade of A, while Carlyle Group has a Value grade of C [6] - The solid earnings outlook and favorable valuation figures position Invesco as the superior value option at this time [6]

Core Viewpoint - T. Rowe Price Group, Inc. is facing mixed analyst opinions and increased investor uncertainty, reflected in its stock performance and options trading activity [1][3][5]. Stock Performance - The current stock price of T. Rowe Price is $97.02, down by $5.64 or -5.49% from the previous trading session [2]. - The stock has fluctuated between a low of $93 and a high of $99 during the trading day [2]. - Over the past year, the stock reached a high of $118.22 and a low of $77.85 [2]. - The market capitalization of T. Rowe Price is approximately $21.3 billion, with a trading volume of 5,365,907 shares [2]. Options Trading Activity - There has been a significant increase in options trading, with 2,489 put options acquired, marking a 77% increase compared to the average volume of 1,403 put options [3]. Analyst Ratings and Price Targets - Citigroup raised its price target for T. Rowe Price from $105 to $107 [4]. - Barclays lowered its price target from $102 to $101 and assigned an "underweight" rating [4]. - Zacks Research downgraded the stock from a "strong-buy" to a "hold" rating [4]. - Evercore ISI increased its price objective from $115 to $116 [4]. - Weiss Ratings reaffirmed a "hold (c+)" rating on the company's shares [4].

Core Viewpoint - KKR & Co. is acquiring Arctos Partners for $1.4 billion, marking a significant entry into the sports and secondaries investment sectors [1][2]. Group 1: Acquisition Details - The deal is structured as a cash-and-equity transaction valued at $1.4 billion, with potential additional equity payouts of up to $550 million [2]. - The initial payment includes $300 million in cash [2]. - Arctos will be integrated into a new unit called KKR Solutions, led by co-founder Ian Charles [1][3]. Group 2: Arctos Partners Overview - Arctos Partners, founded in 2019 and based in Dallas, has approximately $15 billion in assets under management [3]. - The firm holds stakes in prominent sports teams, including the NBA's Golden State Warriors and Sacramento Kings, Liverpool FC in the Premier League, and MLB's Los Angeles Dodgers [3]. Group 3: Industry Context - The acquisition positions KKR in two rapidly growing areas of private markets: sports investment and secondaries investing [3]. - Other recent transactions in the industry include EQT's acquisition of Coller Capital for $3.2 billion and Apollo Global Management's majority stake purchase in Atlético de Madrid [4].