It's my pleasure to introduce Rob Lewin. Rob is the CFO of KKR, and prior to being CFO, Rob served as an investor in private equity. He helped launch KKR's Asia business. He co-led the firm's credit and capital markets business. He served as treasurer and head of corporate development, and most recently he served as head of human capital and strategic talent. That's a very diversified list of experiences at Rob. Rob, first, thank you for joining us. How are you doing today?
Great, Craig. Thank you and to your whole team for hosting us both this afternoon and this week. Great conference. Appreciate it.
Thank you. You're welcome. So KKR is one of the largest, oldest, and most diversified alternative asset managers in the world. Its business model today is very differentiated. It marries third-party capital with its capital markets business. It's an insurance company, and it's big balance sheets. So Rob, let's just start there with the business model, how it's quite differentiated. Maybe you could walk us through how you marry the asset manager with the strategic holding and the insurance company.
Yeah. So there's really three and good morning, everyone. There's really three aspects of KKR. We have our asset management business, roughly $550 billion of assets under management today. I'm sure we'll get into it. A lot of different ways that we think we can effectuate growth in our asset management business over the next number of years. Next, we have our insurance business. Adjusted for a recent block transaction, currently $170 billion of assets. We now own, as of January 2nd, 100% of Global Atlantic. And then finally, Craig referenced strategic holdings. This is our newest segment. It is where our direct interest in our core private equity portfolio sits. And the important thing to understand across our three different businesses is that they really all work synergistically and strategically together to make each better.
For sure, our asset management business makes our insurance and strategic holdings business better. Our insurance business makes our asset management business better. So it's all very much strategically aligned. It's a big reason why we think we can deliver very substantial growth both in the next five years, but then in the five years after that. Our goal is to create a business model that could double over the next five years and have real visibility in line of sight to doubling in the five years after that. We think we've created that by virtue of the three distinct parts of our businesses that all work really well together.
Doubling is great. Big number there. When you combine all that and I also want to add one element to that, not just the long-term growth of the business, but also the compounding of the balance sheet. How should we think of the long-term growth profile when we bring all that together?
Well, maybe let's take it segment by segment. Look at our asset management business, $550 billion of assets under management. What we've said, I think this is really important, is that we believe that we could double our asset management business just by virtue of what we have already started. And so we don't need to start new investing strategies in order to double that business. We don't believe. It's about being great at the things that we've already started. And we're in big, big growth areas. I'm sure we'll talk about it, areas like infrastructure and climate and aspects of the credit market. And I think we've got a real opportunity to take share in real estate. I think traditional private equity remains a growth business for us.
The private wealth-end market is really a large what has been largely untapped market for our industry represents a big long-term opportunity. What we're building across Asia-Pacific, huge end market, of course. And so lots of opportunities, we think, to be able to really scale and be great at the things that we've already started. I think the benefit of that strategy is, one, it allows us to be more focused, so higher likelihood of execution success. And then if we're right and we're able to really scale our revenue but keep our headcount growth and our complexity and operating expense more muted, the output of that is going to be more operating leverage there over time. So that's our asset management business. Our insurance business, Global Atlantic when we first announced the acquisition of Global Atlantic, it was in the middle of 2020.
They had roughly $70 billion of assets. Today, again, adjusted for a recent block transaction, that's now $170 billion. So growing from $70 billion-$170 billion in a three-and-a-half-year period of time. As we look forward and we think about the things that we could do as 100% owner of Global Atlantic, we think we can accelerate growth from here. Again, massive global addressable markets. And we think we've got a really differentiated and unique approach to the insurance space when we combine our ability to source low-cost and simple liabilities, the ability we have to then invest those liabilities up and down the capital structure. Importantly here, access to third-party capital to help us augment the growth of our insurance business and to take advantage of that growth.
And finally, KKR's geographic reach, our presence across Europe and Asia-Pacific, I think is going to be a big differentiator for how Global Atlantic grows. And so that's GI and our insurance segment. And if you look at strategic holdings so again, today, this represents almost 20 businesses that we have direct ownership interest in in our core private equity portfolio, approaching $800 million of look-through EBITDA just on our direct stake. That look-through EBITDA, we believe, is going to translate into future cash dividends that are going to come through our strategic holdings' operating earnings. What we have guided the market to is based on what we have today, so not adding anything new in strategic holdings, we have line of sight to $300+ million of cash dividends or operating earnings by 2026 and $600+ million by 2028.
And I have every confidence that that would be a $1 billion-plus line item for us year in, year out in the future. So a real growth factor for us, certainly in years six through 10, as we think about both doubling the firm over the next five years but doubling it again in the five years after that. And I mentioned at the outset, the key to all of this is making sure that each of these businesses work to make each other better. And we feel really convicted in our ability to do that across each one of our segments.
Great. $1 billion-plus is a lot of new earnings. It gives us a challenge in terms of how we're thinking about that with valuation. Let's move into insurance, Global Atlantic. You hit on that briefly. But you recently bought in the 40% stake that you didn't already own. Just starting off, what drove that decision?
Sure. A couple of things drove. The first thing, of course, is we really like the business and the management team. And we've had the ability to really see how that business has performed through a lot of different macro events. When you think about when we first started diligence in Global Atlantic, it was the spring of 2020, right in the heart of COVID. We saw how the business performed during a regional bank crisis. We saw how the business performed and how management performed in a huge spike in interest rates, lots of geopolitical risks, risks across the asset spectrum of the portfolio. And so we've got, within a 3.5+-year period of time, we've got a 10+-year, we think, of experience in terms of understanding how that business operates, the quality of the book, and the quality of management team.
We're really excited to own the 37% that we didn't own prior to January 2nd. But the second piece of it, and probably just as importantly, is what we think we can do with the business now as one aligned ownership group for the benefit of policyholders and all shareholders. I think there's a lot of opportunity here for us, whether that's in product creation, making sure that we further link up our investment capabilities with the sourcing of liabilities at Global Atlantic. And so even today, GA access is a very small part of KKR's investment expertise across the capital structure. We think there is more we can do there for the benefit of GA.
I think the opportunity to really lean into third-party capital raising we've got these Ivy series of funds that are fee and incentive-fee-paying vehicles to invest alongside the GA balance sheet that will augment GA's growth. We think regional growth, as I said, is a big opportunity. So there's a lot of reasons why one aligned shareholder group, we think, will yield better outcomes than in the prior structure that we had. The other opportunity we've talked a lot about and I think will come from 100% ownership is really building a capital markets business on the back of ABF and investment-grade private credit. We have a competitor that's done a phenomenal job building at that part of their business, generates somewhere between $200 million and $300 million of annual revenue.
That's not a business line we're in today but one that we think we can be very competitive in tomorrow.
Great. So speaking of some of your large competitors, there's various models out there, some like yours, 100% of equity, 100% of the liabilities, some capital light. As you look across the landscape, especially the largest all-insurance hybrid models, what do you see as the biggest advantages or points of differentiation for your model with Global Atlantic?
Sure. So the one thing that was a constant prior to buying Global Atlantic for us is that we wanted to make sure that we always had control and ball control of that investment. And so we never wavered on that piece. It was obviously going to be a large capital outlay for us. But in addition to that, a very big part of our growth story going forward. And so we wanted to make sure that we had day-to-day control. And so that part of our strategy, we've never wavered on. I think moving to 100% only augments what we're able to do. And you're right. A lot of participants in our space have taken different paths. I think the path that we have taken, there's really two of us.
I think we both do a really good job of being able to, in different ways, go out and source liabilities. I really like how we're positioned on the investing side to be able to invest up and down the capital structure and geographically for the benefit of Global Atlantic's liability and policyholders. I really believe that there's a lot more we can do with third-party capital that should be an asset class that our existing investors today take more advantage of, less correlated source of real investment return with yield. So as I think about how we're positioned today, I think across those three areas, really differentiated versus the vast majority of insurance companies. And I think the place where we're really differentiated versus all of our competitors, we touched on this earlier, Craig. It's our geographic reach. I'm going to give you an example of that.
The second largest insurance market in the world is Japan. Japan desires more reinsurance capital. If you look at KKR's footprint in Japan, it is multiples the size of any of our direct competitors. So what we've done is we've really linked up our local team on the ground in Japan with our team at Global Atlantic. We think that's a big market opportunity that we are uniquely positioned to be successful in. That's how we've differentiated our model from our peers. It's what gives us a lot of confidence in continued growth from here.
In GA, you target about a 15% ROE. Insurance isn't like asset management because there are some constraints with capital to grow. Given this, how fast can you grow this business over time?
Sure. I think there's a couple of different pieces to that, Craig. The first and I've touched on these Ivy vehicles that we've raised. We've raised our second one at Global Atlantic's about $2.5 billion in size. If you look at the last two block transactions we've done at Global Atlantic, it represents the better part of $20-plus billion of assets. 75% of that capital was funded through Ivy vehicles as well as co-investors. So again, that's fee and incentive-fee-carrying incentive-fee-eligible capital to help augment the growth of Global Atlantic. And we think there's a lot more we can do there. Second thing, Global Atlantic, in its own right, is highly free cash flow generative. In 2023, it generated $1.3 billion of adjusted operating earnings.
Craig, I know you've spent in your career a lot of time around insurance to know that $1.3 billion of additional capital created can create a lot of asset growth in the business. And then the third thing is we are very fortunate at KKR to have a high free cash flow generative business model. And what we've said is if we see additional opportunities that are over and above what can be funded through IV as well as internally generated cash at Global Atlantic to invest more in the insurance space, if we think those ROEs are compelling, will generate recurring and growth-oriented earning per share for KKR over time, we're going to deploy more of our capital to the insurance space as well. So it's really a combination of those three things. And I'll take you back to history.
Again, we've only owned Global Atlantic now for technically 3 years, announced the initial transaction 3.5 years ago. Their assets have grown from $70 billion-$170 billion, I think, in a pretty capital-efficient manner.
Let's move the conversation on the capital markets business. I mean, this is a business where you are clearly first. Some of your peers have replicated you at this point. How does this provide a competitive advantage to the KKR asset management businesses, especially on the investing front?
Sure. It's pretty amazing. We are approaching our 20-year anniversary of starting our capital markets business, business that we started in 2006. The primary focus of starting the business was to provide best-in-class and aligned capital markets advice, execution, and distribution capabilities to our portfolio companies. Today, we have 70+ people around the world that are focused on doing that. In terms of accessing the capital markets and making sure that we've got the right investor base in our debt syndicates and our equity syndicates, I think what our capital markets teams are able to do is really game-changing for our broader alternatives investing businesses, especially on the private equity and infrastructure side where there tend to be more operating companies in nature.
What we've done since that point in time, we realized we had built out these really high-quality teams, largely staffed from Wall Street, is that we could take that capability set and go provide those similar services to non-KKR clients. That's a business that we started building out maybe 10 years ago. We took that a step further maybe 6 or 7 years ago where we combined our origination efforts for our private credit business and our capital markets business into one. When we go talk to an issuer, we're saying, "We can hold your capital structure through our private credit funds. We could distribute your capital structure through our capital markets business. We could do a hybrid of the two.
And oh, by the way, if you want to go distribute an offering, we will go wall-cross our liquid credit business." We're one of the biggest liquid credit businesses in the world that could potentially take an anchor order in your distributed deal. So when we approach clients, we're talking with three very large parts of KKR. We think it's just a differentiated offering versus what Wall Street's able to be able to offer the clients. It's why we've taken share in the third-party capital markets part of our business and why we think that's going to be a growing part of our business over time.
So one of the challenges with this business is forecasting and modeling. A lot of cyclical factors there. 2021, really strong year. More recently, more trough-y when we think about modeling it. How should we think about near-term upside from the cycle as IPO and M&A activity improves relative to kind of the long-term growth potential at this point?
Yeah. Good question. Some of you might have heard me say this before. What I wouldn't do is mistake quarter-to-quarter or even year-to-year, frankly, variability in revenue with the durability of the franchise. Let's go look at what happened in 2022 and 2023 to that business. The capital markets were largely shut over that two-year period of time. IPO markets for sure shut. Secondary markets largely shut. Leveraged finance market on and off. CLO formation pretty low over that two-year period of time. And our business averaged roughly $600 million of annual revenue in 2022 and 2023. Craig, you followed us for a long time. You know in really robust capital markets environments, it wasn't that long ago where that business was generating $400 million of annual revenue.
So we feel really good with how we've performed over the last couple of years in really challenging markets. But you're going to have quarter-to-quarter variability in revenue. In Q4 of 2023, we generated $225 million of revenue. If you look back in Q1 and Q3 of 2023, we were ±$100 million of revenue. As I look to Q1 of 2024, we're probably closer to that $100 million of revenue number. But at the same time, I get weekly pipelines on what our capital markets business is going to look like over the course of the next number of quarters and months. And I feel a lot better today about what our pipeline looks like for the remainder of 2024 than I felt like at the same time in 2023.
So I wouldn't read too much into, "Does a deal close on the 27th of a month versus the third of the following month in terms of quarter-to-quarter variability of revenue?" That's not how we assess it as we assess the performance of that business. We look at what we've done in 2022 and 2023 and be really proud of that. Now, I'll answer the second part of your question next, which is, "Where can this business grow from a growth perspective?" You said it. In 2021, really robust and buoyant capital markets, we generated $840 million of revenue in that business. We do a lot more as a firm today than we did in 2021. I think we're better positioned with our third-party client base today than we were in 2021.
We briefly talked about what I think the capital markets opportunity is in the more private investment grade and ABF market that we just haven't accessed today. So as I look forward to the next three to five years, normalized capital markets environment, for sure, we can see our capital markets business being a $1 billion-plus a year revenue contributor to KKR on an annual basis.
So given the doubling that we talked about earlier, really strong free cash flow growth expected, on top of that, you got a ton of capital just in the balance sheet today. So my question's on capital management. Your capital return policy has been very different than your peers. As we think of all the potential uses, M&A, dividends, buyback, organic needs, how should we think about your uses of capital over the next few years?
We've been very consistent on our capital allocation policy for a long time. And I really think that's the most important thing. We are focused, very focused, on using our excess free cash flow in four strategic areas. It's core private equity. It's insurance. It's strategic M&A. And it's share buybacks. Each one of those creates recurring and durable and growth-oriented earnings per share growth for us over time. The first three areas create real strategic business building for us. That is our focus. We're doing a lot less investing in our funds than we did 7-10 years ago. It's much more, "How do we allocate our excess free cash flow to those four areas?" And if you look in the past five years, 100% of our net deployment has gone to those four areas of capital deployment and capital allocation.
And I think that's, in part, what's giving us the confidence to be able to have the growth not just in the next five years but gives us real visibility in the five years after that. And we're able to do that because there's lots of parts of the KKR ecosystem that we think we're able to leverage to generate that excess ROE because of who we are, whether that's our brand, our track record, our people, our geographic reach, our access to third-party capital, lots of ways that we can invest our dollars of free cash flow in ways that create high ROEs, recurring and growth-oriented earnings per share. That's the goal. Buybacks will continue to be a part of that, Craig. Since we initiated our buyback plan, we've bought back $2.5 billion of stock. Our average price per share is just over $27 per share.
So we like our body of work. We've retired or bought back roughly 90 million shares. That's about 10% of KKR or 15% of our free float. I know that will continue to be a lever that we have over time to be able to generate additional earnings per share growth for the firm. But really, we are maniacally focused on making sure that we can take our marginal dollar free cash flow and allocate it to the highest ROE opportunities with the highest amount of earnings per share growth over time. And really do think that's a core competency of our management team of being able to move that capital around in such a manner.
Bless you. Rob, with the GA transaction announcement, you adjusted your comp margins. So post that, I do want to get an update in terms of how the firm is thinking about balancing investments, expense growth versus operating leverage. And then also, what drove you to adjust the comp margins?
Okay. So good question. I think the short answer, as it relates to investing back into the firm and generating margin expansions, I believe that we can do both. I want to take you back to the business model point that I brought up at the outset of this discussion. We don't aspire to be all things to all people in asset management. We aspire to be great in the things that we're doing today. It's not to say that we're not going to add new investing strategies over time. I'm sure that we will. But we don't need to be beholden to that next asset management product and that next product that comes with more people and more complexity to achieve the growth that we want to achieve.
And so if we're right on that and we're able to execute on our growth, well, we need less people and less overhead to be able to do that. And so while I'm sure we'll have growth in both, I think we can grow our revenues at a pace that exceeds the pace at which we're growing our cost base at the firm. I've talked about historically operating KKR at a low 60% FRE Margin . I believe industry-leading. With the comp changes that we just made, I believe we can now sustainably operate KKR at a mid-60% FRE Margin . But that's not the cap for us. If we go out and get the execution of our business plan right on the asset management side, I think we've got meaningful more room to be able to augment our FRE Margin s over time.
So Rob, I want to move the conversation to fundraising, which is probably my favorite. But it's especially exciting at KKR now because you're in the process of walking into your next fundraising cycle while many of your peers are walking out of their fundraising cycle. So I believe you're in the process of raising Global Infra 5, which is arguably maybe your strongest product today, followed up by North America 14 and Asia 5. And so that's exciting because you weren't raising a lot of flagships the last couple of years, and now you are. So how do you think, and I know you don't have specific targets, but how should we think about sizing up this fundraising cycle versus the last one?
Yeah. So you're right. We don't have specific targets on any of those funds. But what I can tell you is those three strategies together in the predecessor funds aggregated approximately $50 billion of capital. We feel great about our teams and our track records there and our ability to have success on the successor fundraisers. But maybe just a couple of stats that will help frame what I think the go-forward fundraising opportunity is. If you look back at 2022 and 2023, we raised and aggregated about $150 billion of capital. For us, that's a very healthy number. We were able to do that in a pretty challenged fundraising environment. And we were also able to do that without really any big-scaled flagship strategies in the market. I want to say 4% of our $150 billion, about $6 billion of that fundraising came from flagships.
The other stat I think is really interesting. Obviously, KKR and its almost five-decade of experience is mostly known for our traditional private equity business. Only 6% of that $150 billion, so $7.5 billion of capital raised in the last two years, came from traditional private equity. It's not because we don't think traditional private equity is a growth business. We do. Those fundraisers just tend to be more episodic in nature. So as you look forward to the next two years, we still have that base of capital raising from the last two years, most of it intact, the $150 billion. But now we're going to have flagships. Now we're going to have traditional private equity coming back to the marketplace. I think Global Atlantic is far better positioned today than it was a couple of years ago as a source of capital raising for the firm.
I think the final thing, and I'm sure we'll talk about private wealth separately, this is largely a marketplace that is untapped for us and represents upside in the future in terms of our capital raising. So as we look forward over the next couple of years and we've talked about where we can see capital raising going, what you've heard from us is that we would expect an acceleration of capital raising from where we were in the last couple of years. And so I do think there's quite a bit of opportunity there as you look at the different pieces that we have to be able to hopefully execute on over the next couple of years.
But there's a lot for us to do in the markets to be able to achieve similar types of levels of fundraising and surpass it that we've done over the last couple of years.
So, let's continue with that, with private wealth. You've been very active in launching semi-liquid products. You have a nice suite built out now. Infra may be flowing the fastest today. Why don't you talk about what you've recently built out in the wealth segment?
Sure. I'm going to start at the highest level. From the individual investor, we have roughly $75 billion of AUM today. Over the past 10 or 15 years, that's largely been focused on a direct sales effort through to ultra-high net worth and family offices and putting our closed-end fund product on bank and wire platforms. I think what you're referring to, Craig, is probably our K suite of products, which are designed specifically in nature to be able to sell more through to the mass affluent. They're more perpetual products in nature. We've spent the last several years on product construction and now have up and running vehicles in private equity, infrastructure, real estate, and credit. So our big four core investing verticals each have a product. And like all things at KKR, we don't aspire to be all things to all people.
So you're unlikely to see us with 15-20 products on the shelf. Our ambition is to build products in each one of these verticals that we can be proud of a decade-plus from now where we've delivered a great client experience to our investors and to ultimately build investment products that are each scaled in their own right. And so it's very early days for us. A year ago, we had roughly $2.5 billion of AUM in our K-Series of products. Today, it's $6.5 billion. Middle of last year, we launched vehicles for private equity and infrastructure, relatively new asset classes to the private wealth space in this market. I would say our early impressions have been that they've been accepted more widely than we initially expected. The capital raising for those vehicles has been ahead of what our early expectations were.
We're now raising roughly $500 million a month for our K-Series of products. But it is very early days. We are, of course, focused on what this can be in the next 1-2 years as it grows but much more focused as a management team on what we're building 10+ years from now in this space where I think the addressable markets for what we do are very, very significant. And you don't have to increase the allocations very materially from the individual investor. Today, I think they've got 1%-2% allocation to alts. And we've got every belief that over the next number of years, that 1%-2% is going to go to 3%-5%. And if we're right on market adoption, that's $several trillion of additional addressable demand in the marketplace.
And so we're really excited for what this can mean for our firm over the next decade-plus.
Rob, it's great you've been outperforming in wealth. But some of your competitors also have a similar lineup. Some are bigger. A lot are smaller. What differentiates your product offering today in private wealth?
I think there's a few things. The vehicles that we set up in private equity and infrastructure, set up as operating companies, are conducive to buying control in businesses. I think the output of that is that capital raising there can happen from an Accredited Investor and not just Qualified Purchaser. Marketplace that's not a similar structure that many of our competitors have. We think the Accredited Investor market could be 8-9 times the size of the Qualified Purchaser market. So that's material. I think the second thing we've spent a lot of time on in product construction is making sure that our individual investors can have a very similar experience set to our institutional clients. I think if you look at how our competitors have structured some of their vehicles, that's not the case.
So we wanted to make sure at the outset that they'd be investing, especially in private equity and infrastructure, in very similar deal flow to what our institutional clients are seeing. And the third thing, this has been a big strategic priority for us to get right. And so one of the things we did was we dropped down some assets from our balance sheet and seeded those vehicles to mitigate some of the J Curve. I think that's helped, especially in the private equity and infrastructure launches middle of last year. So those are really, I think, some of the ways we differentiate, Craig. But what's going to be important to winning this space over the long term? That's brand. We would take our brand up against anybody. Obviously, track record. We've got an almost five-year track record, I think, of doing right by our client base.
Certainly, we've invested in this space to be a winner. But if we're right as it relates to the addressable market growth over here, the number five or six player is going to do just fine from an absolute capital raising perspective. That is not our ambition. We really do believe that over time, we'll be a real winner in this space, especially in some of the newer vehicles that we've launched. But of course, we do have some competitors that have done a great job and are out in front of us here.
So at this moment, Rob, why don't we see if there's any questions from the audience? So please raise your hand. We can get you a mic. We have one over here.
Thank you, Ms. Switala. This kind of touches upon the topics of margin and fundraising, which you guys both talked about a few minutes ago. So if you look at one of your larger competitors that has about $1 trillion of AUM, I think they have about 4,700 ± employees. I think you guys are around 4,200. I'm not sure if that includes GA or not. Is that indicative of the leverage that KKR still has in the business, or will you guys need to invest more to double the assets?
That's a really great question. So that employee number does include Global Atlantic. So if you think about the employees that are in our asset management business, it's closer to 2,400. So if you want to think about what the margin opportunity is for us, we've specifically designed our business model so that we don't have to be beholden to continuing to grow into that next product and that next product and that next strategy. And so we do think that that's going to allow us to stay small, keep our collaborative culture, which we think ultimately is what's going to generate the best investment performance for our clients. And in addition to that, we think we'll have a firm that is better able to retain and recruit the best people in what they do long term.
And then finally, the final output is going to be more operating leverage that should flow to the bottom line. But we've got a lot of execution in front of us to get that right. But if you believe in our ability to achieve our vision, those things should come true at the same time.
Any other questions?
One right here.
Thank you for taking the question. Your infrastructure funds have gotten larger and larger with each vintage. So how do you think about the growing opportunity set there, and how big can the infrastructure business get eventually?
Yeah. Thanks for the question. I might have these numbers slightly wrong, but I believe three years ago, our infrastructure business was roughly $20 billion in size. Today, it's $60 billion in size. So there's been a lot of growth. But that growth has happened across a number of dimensions. We're out with our Infra 5 strategy now. We definitely have competitors in the marketplace that have raised far larger fund sizes than our Infra 4 fund, which is roughly $17 billion of capital. Three years ago, we didn't have a core infrastructure offering. Today, we have $10 billion of perpetual capital in core infrastructure. I think that could be a big growth lever for us. From a standing start five, six years ago, probably five years ago, we had no capital around Asia infrastructure.
Today, we are by far the largest provider of Asia-Pacific infrastructure, closing our second fund at $6.5 billion. I think the addressable market for infrastructure investing, and when you combine that with our market position in Asia-Pacific, I think can yield a lot of growth for us going forward. And Craig mentioned it earlier. We've got a lot of momentum on our private wealth offerings. So I think we have a lot of different levers to continue to grow that vertical for us. And then I think the last point I'll mention is we have launched one new investing strategy over the last couple of years in KKR. That's climate-oriented investing. We launched that because the addressable markets are very large.
We believe because of our infrastructure platform, our industrials expertise, our ability to go recruit great talent, that we could be a top three player in the world in that. That's an additional lever that we have to also grow our broader infrastructure business. Our climate business sits in that vertical. Those are all the ways that we're focused on catching up to a couple of competitors or a few competitors that are ahead of us in that space today.
Any other questions? I have one on the ABF business. I'm wondering how having Global Atlantic, this big insurance platform, can enable accelerating growth as you expand in both probably more investment-grade ABF related to GA but also non-investment-grade ABF.
Yeah. So I and we look at the ABF market similarly to where maybe the direct lending market was 6 or 7 years ago. We see increased adoption from our limited partners in that asset class. I think what happened with the regional banks is going to further accelerate that type of asset exposure coming off of regional bank balance sheet and going into long-dated fund structures with long-dated liabilities and better matching assets and liabilities. And so I think we're in the early innings of a migration of what is a $5 trillion addressable market into the hands of the alternatives industry to a greater extent. And I think that's a good thing for the system as you're matching long-dated assets with long-dated liabilities. As you look at our platform today in ABF, it's roughly $50 billion of capital. We are a real leader.
So as I think about the potential secular drivers that are going to drive industry growth in ABF and our market position and a $170 billion balance sheet of Global Atlantic that desires more of this exposure over time in a part of the market where scale really matters, I think we can grow both our investment-grade side and our non-investment-grade side and think that as we sit here a couple of years from now, our ABF business will be a lot bigger than it is today. And we've already experienced some pretty dramatic growth there. Just a point of comparison, before we acquired Global Atlantic, we had roughly $6 billion of AUM in ABF. Today, that number, I think, is $48 billion. And so we think there's a lot more to do there.
We really might be in those early innings of migration shift more towards ABF being sourced and originated and executed through alternatives platforms. I think that's where it should be.
Well, with that, we are out of time. So Rob, Craig Larson, on behalf of all of us at Bank of America, we want to thank you for participating in our conference.
Great. Thank you for having us. Appreciate it. Thank you, everybody.