Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $38 million or $0.49 per share for Q1 2026 [5] - Fee-related earnings were $81 million, up 13% from the prior year quarter, with an FRE margin of 38% [5][18] - Adjusted net income for the quarter was $48.5 million or $0.40 per share, down from $57.2 million or $0.48 per share in the same quarter last year [6][21] Business Line Data and Key Metrics Changes - Total gross AUM additions were $8.7 billion, driven by strong inflows in managed accounts and balanced contributions across commingled funds [8] - The company generated nearly $9 billion of gross additions during the quarter, including $6.5 billion from managed accounts [12] - Fee earning AUM increased by $6 billion, with undeployed fee earning capital growing to nearly $29 billion [14] Market Data and Key Metrics Changes - The company experienced strong fundraising momentum despite a volatile market backdrop [7] - Private wealth subscriptions exceeded $1 billion for the quarter, with a quick recovery from market volatility [8] - The company noted strong performance in Australia, the Middle East, and Asia for fundraising activities [60] Company Strategy and Development Direction - The company announced a framework agreement with FTSE Russell to develop private asset indices, aiming to enhance transparency and benchmarking capabilities in private markets [9][10] - The partnership is expected to lead to modest near-term earnings contributions, with long-term potential for asset management offerings referencing these indices [10][11] - The company is focused on expanding its private wealth platform and has increased its distribution partners to over 550 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of capital market conditions and a healthy pipeline of investment opportunities [7] - The company anticipates stronger performance fees in the second fiscal quarter, supported by improving capital market trends [9] - Management acknowledged the competitive landscape in the credit market but remains confident in their differentiated multi-manager platform [34] Other Important Information - The company raised its quarterly dividend by 17% from $0.24 to $0.28 per share, reflecting strong growth in fee-related earnings [15] - Adjusted cash-based compensation increased to $96 million, reflecting annual merit increases and headcount growth [18] Q&A Session Summary Question: Can you elaborate on the index opportunity with FTSE Russell? - Management highlighted the launch of a series of indices tracking private markets, with initial revenue expected from licensing fees [25][26] Question: What is the appetite for venture and growth products? - Management noted strong demand for their Spring product, attributing success to their established reputation in the wealth channel [31][32] Question: How much does the private wealth franchise contribute to profitability? - Management indicated that private wealth represents nearly 8% of total fee earning AUM and is expected to scale and contribute more to the bottom line [40] Question: What are the expectations for capital markets activity? - Management expects a recovery in activity levels but noted that sellers are maintaining discipline in valuations [66]