Financial Data and Key Metrics Changes - Total asset footprint at fiscal year end 2025 was $958 billion, a 4% increase year over year [5] - Assets Under Management (AUM) stood at $138 billion, growing by $14 billion or 11% compared to the prior year [6] - Total management and advisory fees were $514 million, reflecting a 14% year-over-year growth [6] - Fee-related earnings reached $276 million, a 34% increase versus the prior year, translating into GAAP EPS of $5.41 and non-GAAP EPS of $5.40 [7][8] - The Board approved a 10% increase in the annual dividend to $2.16 per share [8] Business Line Data and Key Metrics Changes - Total fee-earning AUM was $72 billion, growing by $6 billion or 10% year over year [14] - Customized separate accounts grew to $39 billion, an increase of $1.8 billion or 5% [15] - Specialized fund fee-earning AUM reached $33 billion, growing by $4.5 billion or 16% [17] - Revenue from specialized funds increased by $54 million or 21% compared to the prior year [37] - Revenue from reporting, monitoring, data, and analytics offerings increased by $5 million or 18% [38] Market Data and Key Metrics Changes - Overall exit activity remained muted, but deal activity showed recovery in 2024 compared to 2023 [11] - Contributions and distributions from Limited Partners (LPs) remained below historical averages, although distribution activity saw a slight pickup in 2024 [12] - Record deal flow was observed in secondaries and direct investing, with strength across sub-asset classes [13] Company Strategy and Development Direction - The company is focused on delivering long-term results for clients, particularly during market volatility [13] - Continued investment in specialized fund platforms, particularly semi-liquid evergreen funds, is a key growth strategy [14] - The company is actively launching new products and expanding existing ones to capture market opportunities [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and capitalizing on emerging opportunities [9] - The investment environment is characterized by political-driven changes, creating unpredictability [79] - Management anticipates a stable margin outlook despite rising G&A expenses due to ongoing investments in growth [46][47] Other Important Information - The company has implemented changes in reporting for incentive fees and fee-related earnings, including a shift to a high watermark methodology [30][31] - The company is investing in technology solutions, such as the acquisition of 73 Strings, to enhance operational efficiency [28] Q&A Session Summary Question: Margin outlook under new reporting regime - Management expects margins to remain stable despite changes in reporting methodology [46][47] Question: Changes in distribution fees for new products - Distribution fees remain predominantly upfront, with no significant changes observed [48][50] Question: Fee-related earnings margin expectations - Management anticipates FRE margins to be in the high 40% range moving forward [55] Question: Growth in separate accounts business - The separate accounts business has been impacted by macro market conditions, but management is optimistic about future growth as markets normalize [59][61] Question: Institutional interest in evergreen funds - Management believes the trend towards evergreen funds is still in its early stages, with significant potential for growth [80][82]