Core Insights - Trinity Capital Inc. has committed $40 million in growth capital to Paytient, a healthcare payments company focused on improving access and affordability of care [1] - Paytient enables employers and insurers to provide cost-sharing solutions that allow patients to manage out-of-pocket healthcare costs over time without interest or fees [2] - Paytient currently serves over 23 million members and partners with nearly 7,000 employers, insurers, and providers, embedding cost-smoothing solutions into health plan designs [3] Company Overview - Paytient is transforming healthcare access and affordability by offering employer- or health plan-embedded payment solutions for various out-of-pocket expenses [6] - Trinity Capital Inc. is an alternative asset manager that focuses on delivering consistent returns through private credit markets, with a diverse range of business verticals [5]

Core Viewpoint - Bill Ackman's Pershing Square fund is transforming Howard Hughes Holdings into a diversified holding company, similar to Berkshire Hathaway, presenting an investment opportunity for those looking to leverage Ackman's expertise [2][16]. Group 1: Investment Portfolio Overview - Pershing Square's equity portfolio is valued at $13.6 billion, with over half invested in three key stocks: Uber Technologies, Brookfield, and Howard Hughes Holdings [3]. Group 2: Uber Technologies - Uber represents 19% of Pershing Square's equity portfolio, with an investment of approximately $2.3 billion, now valued at around $2.6 billion [5]. - Ackman believes concerns regarding autonomous vehicles negatively impacting Uber's value are unfounded, as Uber's extensive network of over 170 million users is valuable for self-driving car companies [6]. - Uber's EBITDA increased by 35% last quarter, supported by a 14% rise in gross bookings, with expectations for similar growth in the upcoming quarter [7]. - The company generated $2.3 billion in free cash flow last quarter, a 66% year-over-year increase, with a goal to convert over 90% of EBITDA into free cash flow in the next three years [8]. - Uber's stock trades at an enterprise value-to-EBITDA ratio of about 25, which is considered attractive given its 30% annual EBITDA growth [9]. Group 3: Brookfield - Brookfield accounts for 17% of the portfolio, with a total investment value of about $2.4 billion after acquiring an additional 6.1 million shares [10]. - The company has a unique corporate structure with several publicly traded subsidiaries, including Brookfield Asset Management, which owns 73% of its shares [11]. - Distributable earnings rose by 27% year-over-year in the first quarter, with management projecting a cash flow growth rate exceeding 20% annually through 2029 [12]. - Brookfield's shares trade at 13.8 times trailing distributable earnings, with Ackman suggesting a valuation multiple of at least 16 [13]. Group 4: Howard Hughes Holdings - Howard Hughes Holdings makes up 14% of the portfolio, with Ackman acquiring a 47% stake worth about $1.9 billion [14]. - The company's assets are valued at $5.9 billion, indicating the stock is trading at a discount [15]. - Management anticipates net operating income growth of up to 4% in 2025, with long-term projections indicating a 37% increase from 2024 levels [15]. - Ackman plans to diversify Howard Hughes by adding an insurance business, which would provide capital for further investments [16]. - The new structure incurs a quarterly fee of $3.75 million to Pershing Square, along with a 0.375% incentive fee, but may offer investors a direct way to invest in Ackman's strategies [17].

Financial Data and Key Metrics Changes - The company anticipates 15% to 20% growth in fee-related earnings (FRE) for the current year and over 20% in the long term, driven by strong asset management performance and growing retirement needs globally [78][80] - The company manages over $800 billion in assets, with a significant portion generating fee-related earnings [78][79] Business Line Data and Key Metrics Changes - The asset-based finance (ABF) business is highlighted as a clear market leader, with strong origination capabilities and a favorable investment-grade backdrop [22][23] - The hybrid business, which combines elements of credit and equity, is seen as underappreciated but poised for significant growth due to macroeconomic trends [25][26] Market Data and Key Metrics Changes - The company notes a shift in LP allocations, with traditional investment-grade managers beginning to embrace alternative strategies, particularly in asset-backed securities (ABS) [30][31] - There is a growing demand for private credit solutions, with the company seeing strong performance in NAV lending and capital solutions for financial sponsors [68][69] Company Strategy and Development Direction - The company is focused on four major industry drivers: global pension deficits, growth in retail wealth channels, industrial renaissance needs, and public-private convergence [13][14] - The company anticipates continued consolidation in the alternative investment industry, with larger firms capturing a greater share of the market [14][17] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in navigating the current economic environment characterized by higher rates and sticky inflation, viewing it as an interesting time for investment [5][10] - The company is optimistic about its long-term growth strategy, emphasizing the importance of robust risk management and the ability to adapt to changing market conditions [12][74] Other Important Information - The company is actively developing new products to address the global retirement crisis, including lifetime income products and capital-efficient solutions [42][43] - The company is positioned as a key player in the wealth management space, with a strong focus on semi-liquid and evergreen products [48][50] Q&A Session Summary Question: What areas of your asset management business are scaling the fastest right now? - The asset-based finance and hybrid business lines are scaling rapidly, driven by strong market demand and the company's early positioning in these areas [22][25] Question: Are you seeing any major changes in LP allocations geographically? - While there is some initial concern regarding geographic allocations post-Liberation Day, the majority of LPs continue to engage with the company without significant impact on fundraising [36][38] Question: How is the company addressing the global retirement crisis? - The company is developing a variety of products aimed at providing lifetime income and addressing the needs of retirees, leveraging its established distribution channels [42][43] Question: What is the outlook for competition in the annuity channel? - The company acknowledges increased competition but remains confident in its ability to execute effectively and maintain market share through strategic partnerships [76][77] Question: How does the company view the current investment environment? - Management sees a broad and diverse pipeline of opportunities, particularly in NAV lending and high-grade capital solutions, despite potential regulatory changes impacting banks [68][71]

Group 1 - KKR's Co-CEO Scott Nuttall participated in the Bernstein 41st Annual Strategic Decisions Conference, discussing the current economic landscape and inflation concerns [1][2]. - The company acknowledges the recent volatility in the market, highlighting concerns about persistent inflation, prolonged high interest rates, and potential economic slowdown or stagflation [4]. - KKR's internal view suggests that inflation rates are expected to remain elevated for a longer period, which aligns with the company's historical perspective over its 49 years of operation [5].

Financial Data and Key Metrics Changes - The company has a long-term view on inflation and interest rates, expecting them to remain higher for longer, which aligns with historical trends [4][5][9] - The company has $116 billion of dry powder available for investment, indicating strong capital reserves for future opportunities [7] Business Line Data and Key Metrics Changes - The private equity portfolio is marked at over 60% at more than 1.5 times the cost, while public names are marked at an average of four times the cost, reflecting strong performance [18][19] - The company has been actively exiting investments, including sales in Japan and infrastructure, contributing to a mature portfolio [19] Market Data and Key Metrics Changes - More than 70% of the company's deployment in infrastructure over the last five years has been outside the United States, showcasing a global investment strategy [34] - The company has seen a shift in investor sentiment, with a more balanced approach to global allocations, particularly towards Europe and Asia [36] Company Strategy and Development Direction - The company is focusing on building portfolios that can navigate different economic cycles, emphasizing long-term investments [15][16] - Strategic holdings have been introduced to capture lower-risk, attractive reward investments, diversifying the company's offerings [23][25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the realization outlook, citing a strong pipeline of realizations and a disciplined investment approach [15][21] - The company does not foresee significant stress in its portfolios despite macroeconomic concerns, indicating confidence in its investment strategy [12][14] Other Important Information - The company is expanding its product offerings for high-net-worth individuals through partnerships, aiming to capture a larger share of the market [45][49] - The insurance segment is expected to see growth in earnings as the business model transitions and third-party capital is raised [92][93] Q&A Session Summary Question: What is the company's view on inflation and economic growth? - The company expects inflation and interest rates to remain higher for longer, which is consistent with historical trends [4][5] Question: How is the company managing its portfolio amidst macroeconomic concerns? - The company has not seen significant stress in its portfolios and feels confident due to its portfolio construction and historical experience with economic cycles [12][14] Question: What is the outlook for the company's strategic holdings? - The strategic holdings segment is designed to capture lower-risk investments with attractive returns, and the company is optimistic about its growth potential [23][25] Question: How is the company addressing client demand for alternative products? - The company is seeing significant adoption of its alternative products and is expanding its offerings to cater to high-net-worth individuals [38][45] Question: What is the company's strategy regarding direct lending and asset-based finance? - The company is actively involved in both direct lending and asset-based finance, with a focus on scaling third-party business alongside its own insurance growth [76][80]

Group 1 - Trinity Capital Inc. announced a commitment of $15 million in growth capital to Lendflow, a software development company focused on embedded credit infrastructure for fintechs and lenders [1][3] - Lendflow's platform allows for efficient integration of lending experiences with scalable, low-code solutions, enhancing customer acquisition through credit decisioning and underwriting [2][6] - The growth capital will support Lendflow's product initiatives and its mission to democratize access to credit, including advancements in AI-driven data intelligence and automation [3][4] Group 2 - Trinity Capital is an international alternative asset manager that has deployed over $4 billion across 400 investments since its inception in 2008, focusing on private credit markets [5] - Lendflow provides a comprehensive embedded credit infrastructure that enables fintechs and SaaS platforms to launch credit products quickly, enhancing customer engagement and retention [6]

Core Viewpoint - Blackstone (BX) has experienced a significant decline in stock performance, down 14% year to date, underperforming the S&P 500's 0.4% fall, raising questions about its investment appeal [1][4]. Performance Summary - Blackstone's first-quarter 2025 results exceeded Zacks Consensus Estimates, with total assets under management (AUM) reaching $1.17 trillion, a 10% increase year over year, driven by $61.6 billion in inflows [5]. - As of March 31, 2025, Blackstone had $177.2 billion in undrawn capital available for investment, positioning the company to capitalize on market dislocations [9][11]. Challenges and Market Conditions - The company faces headwinds such as tighter credit markets, prolonged high interest rates, reduced deal activity in private equity and real estate, and concerns regarding exit opportunities [6][8]. - The ongoing uncertainty due to trade policies under the Trump administration has led to muted deal activities and caution in the IPO market [7][8]. Analyst Sentiment and Earnings Estimates - The Zacks Consensus Estimate for earnings has been revised downwards for 2025 and 2026 to $4.77 and $6.35, indicating growth rates of 2.8% and 33.1%, respectively [13]. - Blackstone's stock is trading at a price-to-tangible book (P/TB) ratio of 6.94X, significantly above the industry average of 3.47X, suggesting the stock is expensive [16][18]. Strategic Initiatives - Blackstone is focusing on key sectors such as digital infrastructure, energy, life sciences, and commercial real estate recovery, with growth opportunities in India and Japan [11]. - An alliance formed with Wellington and Vanguard aims to develop simplified multi-asset investment solutions, enhancing investor access to institutional-quality portfolios [12]. Investment Outlook - The combination of declining stock performance, premium valuation, and macroeconomic uncertainties raises concerns for investors [19]. - Despite challenges, Blackstone's deployable capital and expansion initiatives could act as growth catalysts, but a cautious investment approach is recommended until clearer recovery indicators emerge [20].

Core Insights - Apollo Funds have agreed to acquire a majority stake in PowerGrid Services (PGS), a leading provider of electric utility maintenance and construction services in the US, to support its growth in response to increasing power demand and necessary grid improvements [1][3] Company Overview - PowerGrid Services (PGS) provides essential utility services, including routine construction, maintenance, and emergency response, with over 1,400 skilled in-house professionals and a national vendor network [2][5] - PGS operates a hybrid service model that supports the entire power grid lifecycle, including transmission, distribution, substations, and vegetation management, and has established a safety-first culture [2][5] Strategic Goals - The partnership with Apollo is expected to enhance PGS's capabilities and growth while maintaining its commitment to safety and reliable service [3] - Apollo aims to leverage its resources to accelerate PGS's geographic expansion and targeted acquisition strategy, positioning PGS to meet the growing demand for power and contribute to grid stability [3] Historical Context - The Sterling Group has supported PGS since 2021, helping the company triple in size and deliver critical electric grid services [3][8] Financial Advisory - J.P. Morgan Securities LLC acted as the financial advisor for Apollo Funds, while Lincoln International served as the financial advisor for PGS and its shareholders [4]

Core Insights - Three alternative asset managers are increasing their dividends, indicating a strong commitment to returning capital to shareholders in a volatile market environment [3][12]. Industry Overview - Over the past 20 years, alternative assets have grown from 6% to 15% of global assets under management (AUM), with expectations of continued growth at around 10% annually through 2029 [2]. Company Summaries KKR & Co. Inc. - KKR announced a 5.7% increase in its quarterly dividend, bringing the annual dividend to $0.74, resulting in a dividend yield of 0.6% [3][4]. - The company has a diversified portfolio with credit strategies (38%), real assets (26%), and private equity (33%) [5]. - KKR aims to reach $1 trillion in AUM by 2030 and has grown its AUM by 15% and annual adjusted net income (ANI) by 37% over the last 12 months [6]. Apollo Global Management - Apollo increased its dividend by over 10% to $2.04 annually, yielding approximately 1.42% [8][10]. - The company primarily focuses on credit investments, which constituted around 88% of its nearly $600 billion in fee-bearing capital [9]. - Apollo reported record fee-related earnings of $559 million in Q1 2025 and significant AUM inflows [9][11]. Blue Owl Capital - Blue Owl raised its dividend by 25%, resulting in an annual dividend of $0.90 and a yield of 4.59% [12][14]. - The company has raised its quarterly dividend eight times since going public in 2021, with credit strategies making up 51% of its $273 billion AUM [15]. - Blue Owl's strategy includes taking minority ownership in other private equity and hedge fund companies, allowing it to benefit from their profits [16].

Financial Data and Key Metrics Changes - Venture Compass generated fee related earnings of R65.7 million or R1.04 per share and adjusted distributable earnings of R62.3 million or $0.98 per share for Q1 2025, representing a 22% year-over-year increase in FRE and a 266% increase in adjusted distributable earnings [3][4][8] - The company declared a quarterly dividend of $0.15 per common share, payable on June 10 to shareholders of record as of May 27 [4] - Fee related revenues totaled R million, reflecting a 117% increase year-over-year and a 6% growth quarter-over-quarter [38] Business Line Data and Key Metrics Changes - The credit segment was a highlight, with successful fundraising across various funds, including PEPCO II raising over million dollars and SPS four raising approximately BRL200 million [7][21] - The agribusiness credit fund, Mavi three, also marked its first closing this quarter, indicating strong activity across credit strategies [7] - The equities segment is seeing compelling opportunities, with Latin American equities trading at attractive valuations compared to peers [15][16] Market Data and Key Metrics Changes - The Brazilian Central Bank signaled nearing the end of its interest rate hikes, which may lead to a more supportive credit market environment [11] - Foreign investors returned as net buyers of BRL3.8 billion in Q1 2025, compared to a net sell-off of BRL6 billion in Q4 2024, indicating a shift in market sentiment [25] - The geopolitical backdrop is expected to attract capital inflows into Latin America, seen as a stable region with strong diplomatic ties [12] Company Strategy and Development Direction - The company is focused on integrating its platforms to foster collaboration and drive sustainable growth across various time horizons [5][6] - There is a strong emphasis on credit strategies, with expectations for growth in this segment to continue in 2025 [8][9] - The company plans to leverage technology, particularly AI, to enhance operational efficiency and decision-making [33][34] Management's Comments on Operating Environment and Future Outlook - Management views the current macroeconomic environment as an opportunity rather than a challenge, particularly in the credit segment [9][10] - The company is optimistic about capturing value for investors amid global trade dynamics and evolving geopolitical conditions [11][12] - There is confidence in the strength of the platform and a strong pipeline of products expected to drive growth in 2025 [18] Other Important Information - The company hosted annual global investment conferences across multiple Latin American countries, reinforcing its position as a trusted partner for capital allocators [13] - The Climate Infrastructure Fund, VICC, is set for its final closing in Q2 2025, focusing on high-impact projects aligned with sustainable infrastructure [17][27] Q&A Session Summary Question: Expectations for FRE margin growth and impact of BRL appreciation - Management expects FRE costs to remain disciplined, with potential for mid-double digit revenue growth, which would allow for substantial cost leverage [47][48] - The impact of BRL appreciation on distributable earnings was minimal, with a positive impact of $2 million noted [50][51] Question: Drivers behind IP and S segment performance - The decline in the IP and S segment was attributed to currency fluctuations and net outflows, particularly in liquid TPV [57][66] - Accrued performance markdowns were mainly due to currency impacts, with expectations for recovery in the second quarter [60][63] Question: Interest in Latin America and potential benefits - There is increasing real interest from global investors in Latin America, particularly in equities, infrastructure, and credit [78][79] - The company is seeing commitments from Asian investors and discussions for sustainable infrastructure investments [79] Question: FRE margin outlook for the year - Management maintains a target for FRE margins in the low 30s, with expectations for recovery in corporate advisory revenues [80][82]