Addressing Apollo’s “Private Credit: Fact or Fiction?” white paper, Zelter said “private credit” is often narrowly defined by direct lending, but Apollo views it as much broader—encompassing assets that historically sat on bank balance sheets or were not part of liquid markets. He traced the rise of sponsor-backed direct lending as a third leg of non-investment-grade financing alongside high-yield bonds and leveraged loans, describing its growth from “zero to $2 trillion.”Using a golf analogy, Zelter said t ...

He said origination drove management fee growth, supported syndication revenue through capital solutions, and helped generate “attractive spread assets.” Kelly also said Apollo’s capital solutions business (ACS) produced an $800 million year, which he said exceeded expectations, and he emphasized that ACS results are linked to origination.Referencing Apollo’s earnings reported the prior day, Kelly said the firm finished “a really strong year,” highlighting that Apollo exceeded its initial guidance for mid-t ...

Core Viewpoint - Executives from major private capital firms, including Apollo, Blackstone, and Ares, are struggling to reassure investors about the safety of their portfolios amid a selloff in the software sector driven by fears of AI disruption [1] Group 1: Impact of AI on Alternative Asset Managers - Concerns about AI's impact on software companies have negatively affected the stock prices of alternative asset managers, despite significant new client investments and a resurgence in mergers and acquisitions [1] - Executives have defended their portfolios, stating that they are well-constructed to withstand AI-related risks, with Ares reporting only 6% of its assets in software, which is highly diversified [1] - Apollo's CEO indicated that software accounts for less than 2% of its assets under management, with minimal exposure in private equity and insurance portfolios [1] Group 2: Stock Performance and Market Reactions - Despite some recovery in stock prices following earnings reports, shares of these firms remain down approximately 30% over the last six months [1] - KKR has about 7% of its portfolio in software, with its shares down 29% over the same period, while Blue Owl reported 8% exposure and a 36% decline in share price [1] - Blackstone's shares have decreased by 24% over the last six months, with software comprising 7% of its total assets and 10% of its credit holdings [1] Group 3: Executive Insights and Future Outlook - Executives from these firms express confidence in their portfolios, with Blue Owl's co-CEO stating they do not foresee meaningful losses or performance deterioration [1] - KKR's co-CEO mentioned that the firm has identified AI as both an opportunity and a risk, with $118 billion in dry powder available for investment [1] - Analysts suggest that the narrative surrounding alternative asset managers has shifted, with concerns about their role in AI financing and potential losses due to AI's transformative impact [1]

Summary of GCM Grosvenor Conference Call Company Overview - **Company**: GCM Grosvenor (NasdaqGM:GCMG) - **Industry**: Alternative Asset Management - **AUM**: $87 billion - **Client Approach**: 70% of AUM in customized separate accounts [1][3] Key Financial Highlights - **Record Fundraising**: $10.5 billion for the year, with $3.5 billion in Q4 [5][10] - **Performance Fees**: Strong performance fees from the ARS business, although realized carry revenue was lighter than expected [6][10] - **Operating Leverage**: Fee-related earnings margin increased by a couple of hundred basis points, with expectations for continued operating leverage [7][10] - **Pipeline Growth**: Current fundraising pipeline is larger than a year ago, indicating strong demand for alternative investments [10][15] Strategic Focus Areas - **Wealth Channel**: Identified as a critical area for long-term growth, with high re-up rates (90%) from clients and significant opportunities for cross-selling [18][21] - **Infrastructure Investments**: Targeting infrastructure assets due to fundamental demand, particularly in power generation and data centers [36][38] - **Credit Business**: Expanded to $17 billion AUM, with interest in credit secondaries and asset-backed credit [30][31] Market Dynamics - **Interest Rates and Demand**: Despite rising interest rates, demand for alternative investments remains strong, with no significant capital withdrawal from institutional clients [15][16] - **SaaS Exposure**: Low exposure (4% of AUM) to SaaS, with a belief that AI presents a significant opportunity for growth [12][13][14] Growth Initiatives - **Grove Lane Partners**: Joint venture aimed at enhancing the wealth platform through a dedicated distribution team [50][52] - **Private Label Products**: Development of customized products for RIA firms, with 11 relationships established in the last two years [56][58] Challenges and Opportunities - **Credit Quality Concerns**: Negative press around private credit has not significantly impacted fundraising, indicating resilience in client relationships [32][33] - **Infrastructure Growth**: Anticipated increase in target allocations for infrastructure investments as demand continues to rise [27][36] Future Outlook - **Long-term Goals**: Aiming to double fee-related earnings (FRE) from 2023 to 2028, with a target of $1.20 adjusted net income per share by 2028 [23][25] - **Market Positioning**: GCM Grosvenor is well-positioned to capitalize on growth opportunities in the wealth channel and infrastructure sectors, with a focus on maintaining strong client relationships and performance [21][22][36]

FS Specialty Lending Fund (FSSL) Declares Distribution for February 2026 [Accessibility Statement] Skip NavigationPHILADELPHIA, Feb. 10, 2026 /PRNewswire/ -- The Board of Trustees of FS Specialty Lending Fund (the Fund) (NYSE: FSSL) announced the monthly distribution for February 2026. The distribution of $0.1375 per share will be paid on February 27, 2026. Further information on the distribution is summarized in the charts below.The current annualized distribution rate equates to an annualized distribution ...

FS Credit Opportunities Corp. (FSCO) Declares Distribution for February 2026 [Accessibility Statement] Skip NavigationPHILADELPHIA, Feb. 10, 2026 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for February 2026. The distribution of $0.0678 per share will be paid on February 27, 2026. Further information on the distribution is summarized in the charts below.The current annualized distribution rate equates to an annualized dis ...

KKR 2026 Conference Summary Company Overview - KKR is one of the largest and oldest alternative asset managers globally, with over $700 billion in assets under management (AUM) [3][5] - The company has a differentiated business model that integrates asset management, insurance, and strategic holdings [4][5] Business Model - KKR's business model consists of three main components: 1. **Asset Management**: Over $740 billion in AUM with identifiable growth opportunities [5] 2. **Insurance**: Owns Global Atlantic with $220 billion in assets, showing significant scaling from $72 billion five years ago [5] 3. **Strategic Holdings**: Focuses on long-term ownership of businesses that generate compounding cash flow [6] - The synergy between these components enhances overall performance and allows for growth without significant increases in headcount or complexity [6][7] Recent Acquisition - KKR announced the acquisition of Arctos, which has $15 billion in AUM and is a leader in sports investments [12] - The acquisition aligns with KKR's strategic M&A framework and aims to build a $100+ billion AUM business by leveraging KKR's resources and expertise [14] Macro Environment - The macroeconomic outlook for 2026 is positive, with expectations of increased M&A activity, IPOs, and potential Fed rate cuts [15][16] - KKR anticipates a constructive year in capital markets, with more deployment and monetization opportunities [16][17] Private Equity and Real Estate - KKR's private equity business has seen a 26% growth in fee-paying assets in 2025, doubling its assets over the past five years [22] - The real estate sector has faced challenges, but KKR believes values have bottomed out and is positioned to capture market share as conditions improve [24][25] Financial Performance and Guidance - KKR aims for $4.50+ in fee-related earnings (FRE) and after-tax adjusted net income of $7+ for 2026 [35] - The company has experienced significant growth in management fees, with a 50% increase over the past three years, while operating expenses grew by less than 25% [28] - KKR has $18.6 billion in embedded gains, up 19% year-on-year, which will drive future investing earnings [40] Investment Strategy - KKR follows a linear deployment model, aiming to deploy capital steadily over the investment periods of their funds [42] - Key areas for deployment include infrastructure, Asia Pacific, and asset-based finance, with significant growth in the infrastructure business from $18 billion to $100 billion over five years [43][44] Asia Market Insights - KKR has a strong presence in Asia, with significant investments in Japan and India, and has seen a 70% increase in deployment in 2025 compared to 2024 [48] - The company believes in the growth potential of the Asian market, contributing to over half of global GDP growth in the coming decade [46] Alternative Investments in Retirement - KKR anticipates that alternative investments will play a role in the retirement channel, especially given their partnership with Capital Group [49][51] Software Exposure - KKR has a 7% exposure to software across its AUM, with 15% in private equity, which is lower than peers [54] - The company has not re-underwritten its software exposure recently but believes in the potential benefits of AI for improving margins [56] Strategic Priorities for 2026 - KKR's strategic focus will be on integrating Arctos and investing in areas where it has competitive advantages, particularly in the institutional market and private wealth [33][34] Conclusion - KKR is well-positioned for growth in 2026, with a strong business model, strategic acquisitions, and a positive macroeconomic outlook, aiming to leverage its strengths across various asset classes and markets [16][22][35]

Blue Owl Capital Inc. (NYSE:OWL) is one of the 14 oversold value stocks to invest in right now. Blue Owl Capital (OWL)’s CEO Mark Lipschultz Says AI Could Not Temper Software and Technology-Linked Businesses On February 5, 2026, Reuters reported that Blue Owl Capital Inc. (NYSE:OWL) co-CEO Mark Lipschultz said AI could not temper software and technology-linked businesses. His comments came following a global selloff that wiped out over $800 billion from the S&P 500 software and services index since Janua ...

TPG 2026 Conference Summary Company Overview - **Company**: TPG (NasdaqGS: TPG) - **Founded**: 1992, with roots in managing the Bass family office - **Public Listing**: Went public in 2022 - **Assets Under Management (AUM)**: Approximately $290 billion [4][6] Key Financial Highlights - **4Q 2025 Earnings**: Announced on February 10, 2026, with proactive communication to address market concerns [5] - **Capital Raised**: $51 billion in 2025, a 70% increase from $30 billion in 2024 [7][16] - **Investment Deployment**: Over $50 billion deployed in 2025 [7] - **Fee-Related Revenue (FRR)**: Grew to $2.1 billion; Free Cash Flow (FRE) increased to approximately $950 million from over $300 million at IPO [8] - **FRE Margin**: Expected to expand from 45% to 47% in 2026, with an 800 basis point increase since IPO [18] Growth Strategy - **Diversification of AUM**: Shift from 80% private equity at IPO to 50% currently, with growth in other asset classes such as private credit and real estate [10][11] - **Horizontal and Vertical Growth**: Focus on expanding existing businesses and entering new asset classes, including GP-Led Secondaries and hybrid solutions [12][13] - **Strategic Priorities for 2026**: Complete existing fundraises, scale new businesses, and expand private wealth and insurance channels [14][15] Fundraising Insights - **Product Diversification**: In 2025, TPG was in the market for about 25 products, expected to increase to 35 in 2026 [19] - **Credit Business**: Raised over $20 billion for credit businesses in 2025, with expectations for robust fundraising in 2026 [20] - **Real Estate Business**: Anticipated growth with at least four different real estate funds in 2026, supported by strong early dialogues with Limited Partners (LPs) [20] Realizations and Market Conditions - **Realization Strategy**: Averaged $25 billion in realizations annually over the past five years, with expectations for a pickup in 2026 due to stabilizing market conditions [21][22] Insurance Business Development - **Partnership with Jackson Financial**: Established a long-term investment management agreement, focusing on direct lending and investment-grade asset-backed finance [23][26] - **Expansion of Insurance Relationships**: Leveraging Angelo Gordon's capabilities to enhance offerings for insurance clients [24] Private Wealth Channel - **TPOP Launch**: Successfully raised about $1.5 billion since its launch, with plans to expand distribution partnerships [30][31] - **Future Products**: Introduction of a multi-strategy private credit interval fund and a non-traded REIT to broaden offerings [32] Credit Quality and Management - **Direct Lending Focus**: Twin Brook's direct lending strategy targets companies with $0-$25 million EBITDA, maintaining lower leverage levels [39] - **Credit Quality Assurance**: High credit quality with low pick rates, active management of risks associated with portfolio companies [40] Conclusion - TPG is positioned for continued growth through diversification, strategic partnerships, and a focus on expanding its asset management capabilities across various sectors, including private equity, credit, and real estate. The company aims to leverage its strong fundraising capabilities and enhance its offerings in the insurance and private wealth channels.

Summary of Blue Owl Capital Conference Call Company Overview - **Company**: Blue Owl Capital (NYSE: OWL) - **AUM Growth**: Grew from $0 to $300 billion in less than 10 years, focusing on private credit, digital infrastructure, and asset-backed finance [4][10][11] - **Market Position**: Ranked as a top two alternative manager in the private wealth channel, which is the fastest-growing channel over the last five years [4] Macro Environment - **Market Outlook**: Entering year four of a bull market with expectations for accelerated IPO and M&A activity [6] - **Interest Rates**: The company is agnostic to interest rate movements, but a favorable M&A environment is anticipated [6][8] - **M&A Activity**: Cautiously optimistic about M&A leading to good deployment opportunities, despite previous underperformance in this area [7][8] Strategic Priorities for 2026 - **Execution Focus**: 2026 is centered on execution and improving margins after a period of acquisitions and integration [10][11] - **Margin Improvement**: Expected gradual increase in margins from 58% to 60% over time [11] - **Fundraising Goals**: Aiming to complete fundraising for various funds, including a target of $7.5 billion for the GP Stakes Fund [12][13] Deployment and Investment Strategies - **Deployment Outlook**: Strongly tied to M&A cycles; private equity firms prefer financing buyouts with private debt [16][18] - **Digital Infrastructure**: Significant backlog in digital infrastructure projects, with a focus on high-quality tenants [9][19] - **Triple Net Lease Strategy**: Market leader in triple net lease investments, generating over 20% returns per annum [20][22] Asset-Backed Finance (ABF) - **Acquisition of Atalaya**: Acquired Atalaya to enhance ABF capabilities, with a total addressable market (TAM) estimated between $8 trillion and multiples of that [31][32] - **Performance**: The ABF segment has shown exceptional performance, generating a 19% gross return last year [34] Credit Quality Trends - **Loan Performance**: Average company EBITDA of $320 million with low annualized losses of 8 basis points over 10 years [36][37] - **Market Sentiment**: Despite negative press, portfolios are performing well, with expected continued strong performance over the next 18-24 months [38][39] Wealth Management Insights - **Market Position**: Second in the world for private wealth management, with a focus on providing a better investor experience [57][58] - **Future Trends**: Anticipates a shift towards private equity and strategies offering low volatility and high current income [59][60] Additional Insights - **Redemptions**: Noted an increase in redemptions due to market volatility, with expectations for a return to historical levels later in the year [47][50] - **AI and Technology Investments**: Cautiously optimistic about the long-term impact of AI, focusing on partnerships with established companies rather than speculative investments [29][30] This summary encapsulates the key points discussed during the Blue Owl Capital conference call, highlighting the company's strategic direction, market outlook, and performance metrics.