Briefly, in terms of Rob's background, he joined the firm in 2004 and since then has held a number of positions at KKR, including an investor in the private equity side, co-leading the firm's credit and capital markets businesses. He was the treasurer and head of corporate development, head of human capital and strategic talent, and also, from 2006 to 2010, Rob lived in Hong Kong and helped really build out the KKR business in APAC, so wonderful set of experiences, obviously, so first of all, Rob, thanks for joining us. We appreciate you taking the time and being with us.
Mark, thanks for having us. This is our first time at this event, and so we would expect to make it a routine part of our conference circuit. We appreciate you having us. Obviously, UBS and KKR, great partnership, and look to extend it here too.
Absolutely. So, thank you. Thank you for that. I think, given that it is your first time, maybe it would be great just to spend a couple of minutes, if you don't mind, making sure the audience gets to know you a little bit better. So, if you want to just go through your background, how you got to KKR, and having been there over 20 years now, sort of your path at the firm.
Yeah, it's been a really fortunate run over the past 20-plus years. I've gotten to do a lot of different things at KKR across different geographies. Undoubtedly, those types of experiences, I think, have made me more effective in the role I sit in today. How I got to KKR? I got lucky 21 years ago. My first two interviews, actually, were with Joe Bae and Scott Nuttall, who are now our Co-Chief Executive Officers at the time. They were principals at KKR. It was a very different firm 20-plus years ago. The reason I've stayed for all these years is our core culture is really unchanged. It's the people. It's working together as a team to try and drive really awesome outcomes for our clients and now our public shareholders and for each other.
And so, we're really, I think, all fortunate to have found this place. And if you looked around KKR, you're going to see a lot of people with a similar background to me. I've been at KKR for a very long time and have experiences across different businesses and different geographies. And I think that's part of what makes us really unique as a firm.
That's great, so as we think about KKR's business model, I would say you're a bit unique versus your peers really having the asset management piece, insurance, and then Strategic Holdings. Do you mind just walking us through how that portfolio came about and how you think about that trajectory going forward?
Honestly, it's been a multiple-decade, very purposeful evolvement of our strategy or of our business model over time. And I think many of you are, of course, familiar with our asset management business. But a long time ago, we recognized that in order to have sustained and long-term earnings growth across our franchise, we needed to have other ways to positively impact our P&L in a way that was really long-term, synergistic, and accretive with our core asset management business. And so, our asset management business today is roughly $640 billion of AUM. We do not aspire to be all things to all people because of our model.
So, it allows us to be focused on being, we think, uniquely great at the things that we are already doing. In insurance, we are the 100% owner of Global Atlantic. It's a roughly $190 billion life and annuity business. We've got identifiable plans to be able to double that business over time and really do believe it's a unique and very economically powerful part of our business model that is synergistic, of course, with our asset management business. And then finally, Strategic Holdings. This is the newest part of our firm. This is really about owning businesses for the long term, generating compounding and recurring earnings per share. It is very much an and on top of what we're doing in asset management and in insurance.
And we think it's an area with truly an unconstrained, addressable market where we've got a real right to win as an organization and, of course, very synergistic with our asset management business in that we have no people that sit in Strategic Holdings today. So, all real upside given the platform that we've built.
So, as we look at 2024, it was obviously another incredible year for the firm. From a stock price performance perspective, the stock was up 87% last year. You mentioned an AUM number of over $600 billion, which is obviously an extraordinary figure. Very strong fundraising numbers despite a more challenging environment, $110 billion of inflows. And then you had very strong deployment numbers as well. So, as you think about those pieces, what really drove that growth in 2024?
Sure. So, let's start with fundraising. Last year, we raised a little bit over $110 billion of capital. It's the second largest fundraising year we've had in KKR's 48-year history. It's also a fairly large rebound from where we were in 2023. But I don't think that tells all the story or even close to it. If you look at that $114 billion of capital we raised last year, only 15% came from our more flagship fundraisers. And approximately only 5% of that $114 billion came from our traditional private equity business, which is our heritage business for 48 years.
And so, as we embark now, and we're six months in to looking at our flagship supercycle of capital raising with a lot of early momentum on the back of an additional 30 strategies we have to market, that's part of what gives us the confidence of being continued to scale from here and deliver really successful fundraising outcomes. Successful fundraising outcomes lead to successful management fee outcomes. And you've really seen pretty close to industry-leading growth in our management fees, both over the last number of years as well as last year.
But also, because we've had such successful outcomes in our real assets and our credit business on a capital raising side, I think this part is probably a little bit less well understood for those who don't follow KKR as closely. Last year, we generated roughly $3.5 billion of management fees. Each of our three business lines in asset management, so that's private equity, real assets, and credit, all contributed north of $1 billion of that $3.5 billion.
And so, I don't think it's a stretch to look out over the next number of years where we expect a lot of management fee growth and to see potentially a business that's got roughly a third of our management fees in each of our three business lines. I really don't think, I know you won't find another alternative asset management business at our scale or close to our scale that's got both the management fee growth and the diversification of strategy like that and being able to balance those two.
So, just to double-click for a second, you talked about the fundraising supercycle. Clearly, there's going to be a lot more opportunity there as we look at 2025 and 2026. Also, in capital markets, though, you have a meaningful business there. You're coming off, again, a strong year in 2024. Where do you see the growth for that business as well as you look forward in the next couple of years?
Our capital markets business, again, a little bit unique to KKR, generated roughly $1 billion, just north of $1 billion of revenue in 2024. That is a high watermark for us in that business. Put into context, our capital markets business was roughly half the size four years ago. And so, we are really proud of what we were able to accomplish in 2024 in that business. I think, though, if you pulled our management team, I think we would all tell you that we are more proud of what that business was able to deliver in 2022 and 2023 when the capital markets were largely shut, as you know, Mark, right? IPO market, nonexistent.
Leveraged finance market, very choppy through most of that period of time. Secondary market, on and off. And in each of those two years, we generated plus or minus $600 million of revenue. I think that really shows the durability of the franchise. It wasn't that long ago when our capital markets business was generating $300-$400 million in really good markets. So, I think we've really taken the floor in that business up. And then 2024 showed that we're able to spike that business and generate really outsized outcomes when the markets are available as well.
We've got lots of identifiable areas for growth going forward. So, don't think a billion is the end for us. We expect a robust 2025 as we sit here today and what we can see in the environment. Like most years, I think a little bit of a slower Q1. I'm sure similar in your business as pipelines rebuild after the end of the year. But a lot of confidence in the outlook for 2025 and what we're building, especially over the next three to five years.
Makes sense. So, clearly, a lot of different growth drivers to the business. Last week, you reported earnings. And again, when you look at the stock price reaction, the stock was down about 8.5%. So, clearly, a bit of a disconnect, perhaps, between what you believe is the opportunity and the growth potential versus what the Street was perhaps giving you credit for. Why don't we just take a few minutes, given that we're sitting here today, just to hear your perspectives on perhaps what the Street either misunderstood or didn't fully appreciate coming out of the earnings announcement and any comments you'd like to make?
Great. And thanks for the question. If I could, I'll tell just a little bit of a story. So, I've been in this role a little over five years. And I remember before our first earnings call, Craig Larson, who's in the back of the room here and who runs our investor relations, pulled me aside. He said, "Hey, be very careful with your words and your intonation on earnings calls. They matter quite a bit." And so, since then, I have tried to be very deliberate in the things I say on those calls. And of course, I want to make sure that the messages that I'm conveying are very consistent with what I'm thinking. And so, I was pretty surprised last Tuesday when Craig came into my office at the end of the day.
This is after reported earnings. Obviously, I saw the stock price performance through the day. He said, "Hey, you know, I think some of your comments earlier today were perceived as us backing off of our fee-related earnings guidance that we had put out for 2026." So, to be very clear, that's absolutely not the case. We were intending to make a very positive statement about the outlook. But let me maybe give a bit of context or an explanation for how I think that came about. As I was talking about our management fee growth and the importance of management fee growth to both beat and hopefully beat by a wide margin our fee-related earnings guidance that we have out there for 2026, I did reference that we have to go execute.
And I think what some heard was the word execute and felt like that was a sign that we were backing off and we had a lot that we needed to get done to be able to achieve our guidance. Now, to be again very clear, I was intending the opposite. Of course, we have to go execute, as most good companies, all good companies, have to go do. But what I was trying to convey is that as a management team, we've actually never had more confidence in our ability to go in and execute.
And as a management team, I think we've got a real track record of delivering against the guidance that we've put out. And we're all excited to be able to go do that on behalf of our shareholders going forward. So, I appreciate you asking the question. I hope that cleared up some of the ambiguity from last Tuesday.
Perfect. That's super helpful. Thank you. Another topic that came up on the earnings call, you announced the purchase of additional stakes in three of your core PE portfolio companies through the strategic holdings business that we were just chatting about earlier. Can you maybe just expand on that strategy and specifically why you chose to lean in when it came to these specific stakes?
Maybe let me just take a quick step back and talk about what we're trying to build in Strategic Holdings. And we can talk about what we announced last week. And so, today, Strategic Holdings is really centered around owning businesses that we really like for the long term. It's the core capability of KKR and being able to do that. And today, in Strategic Holdings, we've got 18 businesses that are part of our core private equity portfolio. Our direct stake, so what we own, which is on average about 20% of these businesses, we control these businesses largely through our client capital that's besides us. But our stake, roughly 20%, contributes approximately $3.7 billion of revenue and $900 million of EBITDA. Very sizable portfolio.
The attributes of this portfolio, really strong management teams, defensible industries, less cyclical in nature, tend to be lower leverage through the hold period, and businesses that we want to own for a very long period of time, and so, what we announced last week was that we were increasing our stake in three businesses that sit in Strategic Holdings today. That's USI, 1-800 Contacts, and Heartland Dental. We were, in aggregate, purchasing or investing a little bit north of $2.1 billion of capital. KKR was speaking for $1.1 billion, and we were doing that beside a key strategic partner of ours, both in the strategy and across the firm, Chubb, who's talked about this relationship publicly.
They've been a phenomenal partner to us and really beside us here from day one and have benefited from the value creation to date and really believe in what we're doing in this part of the business as partners together. And so, as part of this announcement, we increased our guidance for Strategic Holdings. To put in perspective, last year, the business generated pretty close to negligible operating earnings. We are now saying that by 2026, we expect $350-plus million of operating earnings, by 2028, $700-plus million, and by 2030, $1.1-plus billion. Again, to put that in perspective, from negligible earnings to $1-plus billion over the next six, seven years, six years from now, without any people that sit in that segment today.
I think that shows the power of the business model that we've created. We're really excited about what we're doing in Strategic Holdings today. As we ramp into 2026, we would expect in this coming quarter, probably mid-20s of operating earnings, scaling modestly through the year. The real inflection point for us will come looking at our numbers in 2026 with that 350-plus of operating earnings.
That's a phenomenal business, and again, pretty unique, so congratulations on that. I think the other, if we just shift gears for a second, the other business that I do think is actually very, very interesting is Global Atlantic, which you touched on earlier, now fully owned by KKR. Can you walk us just through, first of all, how you thought about that business? Obviously, your ownership increased over time to now be 100%. And what are you really building here? Some of your competitors are also going deeper and deeper into insurance, so how should we think about that?
Yeah. So, Global Atlantic, $190 billion life and annuity player. When we first announced our acquisition of GA, which was in the summer of 2020, they had roughly $70 billion of AUM. So, almost a tripling of AUM under our ownership. And moving up to 100% earlier last year, I think, is an impetus here for us to be able to do even that much more. And I'll come to that. Really, the vision for us is I think there's four things that differentiate in aggregate what we are building and why we are so confident about to go forward and what we're creating and continuing to create at Global Atlantic. Number one, for any of you who spent time around the insurance space, I think you would agree that if you found best-in-class management, they can create a lot of alpha.
We believe we've got a best-in-class management team led by Allan Levine, who founded the business over 20 years ago inside of Goldman Sachs, and they are great at sourcing simple to understand and predictable liabilities at scale. Number two, I'd go take our investment platform, our global investment platform, up against anybody in the world around putting those liabilities to work.
That's synergy number one. Synergy number two, and the third point here, is that there is a very significant opportunity to raise third-party capital that sits alongside Global Atlantic, so utilizing our distribution team to raise capital that pays Global Atlantic management fee and carry and is invested alongside their liabilities and their asset exposure, so it's a way for Global Atlantic to grow in a more accelerated fashion and in a higher ROE way.
And then finally, I think the last piece that really differentiates what we are doing specifically relative to others is our geographic breadth. You look at Asia-Pacific and the platform we have on the ground there. Since we did the deal with Global Atlantic, we've done six transactions in Asia-Pacific. We announced a very large strategic partnership with Japan Post Insurance. We look at the Japan market as one example. It's the second largest insurance market in the world in need of more reinsurance capital. And we've got 200 people on the ground in Tokyo, both from a relationship perspective and, more importantly, the ability to go source local denomination assets. I think it positions us very well. And you take all of those attributes together and the characteristics and is why we feel good about what we're building.
Now, we are evolving our model there a little bit since we took 100% ownership. A little counterintuitively, Global Atlantic has about 1% allocation to alternatives today. The industry is roughly 5%-8%. Of course, we know that because many of them invest with KKR, and we have talked about both elongating the duration of our liabilities and then utilizing more of the investment capabilities across all of KKR and modestly taking up our exposure to alternatives on the back of an increase in the duration of our liabilities, and some of the feedback that we've received is that it would be helpful and useful to provide more transparency of the roadmap of where we're going.
We're certainly going to take that on board and would endeavor to do so with our shareholders in the near term, including how we're viewing this strategy and the implications it will have to the P&L over the coming years. We are more excited today about what we have between Global Atlantic and KKR than at any time since we announced that first purchase back in the summer of 2020.
That's great. So, you mentioned Asia-Pacific, again, in the context of the GA business. But if we just take a step back more broadly and think about that region for KKR, as I mentioned at the beginning, you moved to Hong Kong early in your career at the firm to help build the business. I think it's widely recognized as one of the stronger private equity businesses in the region. How do you think about that franchise today? How do you think about the growth? As you know, UBS is a big player in Asia as well. We're asked all the time about our own growth aspirations in the region. So, curious to get your perspectives on where you see the opportunity.
Yeah. I'll start with the punchline, then I'll walk you through our platform a bit, which has changed a great deal since I was there. We have talked about and believe that our Asia-Pacific business one day will be as big as our US business. There's lots of reasons for that that I'll get into. But taking a step back, we've got roughly $70 billion of AUM, approximately 600 people across Asia-Pacific, eight offices, the largest private equity platform, the largest infrastructure platform, I believe, the largest private credit fund, and a growing real estate business, in addition to what we're doing in insurance.
The reason why we have such confidence in the growth and why we think it'll be such an increasingly large part of our business, one, if you look out over the next 10-plus years, over half of global GDP growth likely to come from Asia-Pacific. Number two, alternatives are still very underpenetrated in that part of the world, and three is our competitive positioning and where we stack up.
That's our people, our brand, our access to talent, the scale of our platforms already in that part of the world. It creates a lot of barriers to entry, and it is really hard to go stand up a full suite of Asia-Pac capabilities, as you would know, across that region, and we cover it all, and that's been over 15 years, close to 20 years, actually, in the making, and there's been a lot of success in those 20 years, but as we look forward, we continue to believe that we're going to really grow that part of our business in a differentiated fashion. The last point I'd make, you referenced I had moved out there, and I'd moved out there with Joe Bae.
He was running the region, started the region for us. We had a lot of expats on the ground those first few years, and it was really about bringing our culture over to Asia. Today, we have, of those almost 600 people, very few expats, and I'm not sure we have any senior people on our team who are expats, all local, and that's a really important part of being successful in that part of the world.
How do you think about that region post-election? Obviously, there's been a lot of noise, specifically around China in the last couple of months. But as you think of growth opportunities as well, I know you have a big business in Korea, for example. I was with your team there just a couple of weeks ago. I know you've made a big investment in India. You have a big presence in Japan. But just how do you think broadly about the various markets versus China exposure?
Yeah. And this is not necessarily a KKR comment. It is probably an industry-wide comment for the alternative space. But when you think about the duration of our investments, they're quite long-dated in nature. And so, oftentimes, we'll be through multiple macro cycles, certainly multiple presidential administrations. And that does allow us to have a different lens on investing. It's not to say that we're not impacted by the here and now. Of course, we are. We've got very significant resources across the macro space as well as the geopolitical space.
They are ingrained with our deal teams. China today is an area where it's roughly 1% of our firm AUM, so relatively small in context. But it is still an area where we are investing. But you look at the investments we've made over the last several years, all domestic consumption-oriented. And that's really where our focus has been.
I think the other thing that benefits us in Asia-PAC is the breadth of the business. You don't have to be concentrated in China or Korea or Japan or India or Southeast Asia, Australia. We are across that continent in a very big way, and we're able to lean in and lean out depending on the opportunity. Today, we are probably most excited about the investing opportunity at scale in Japan and India, obviously for very, very different reasons. You look at the Japan economy coming out of almost three decades of a deflationary environment. We think there's a lot of exciting things happening in that part of the world. For our private equity franchise, our real estate business, and also insurance business, I think we're going to be quite active there for some time.
So, while we're talking about geopolitics, if we just think about the macro environment for a second, obviously, a lot of uncertainty and volatility, whether we're talking about the rate environment, the various policies of the new administration, tariffs, the topics that we're all discussing every day. How do you think about volatility in the context of the KKR model, both the good as well as sort of what you have to manage around or potential concerns you see?
Yeah. And so, of course, anytime you're talking about macro, very multifaceted question. Volatility can create a lot of opportunity for us. On the investing side, we have over $100 billion of AUM. And given the long-dated nature of our capital, when there's high moments of volatility, we are not forced to exit most of what we do as well. And so, in a lot of ways, volatility, while it could be painful to go through, could certainly be beneficial to our business and has been if you look at past moments of high volatility over time, so that's the first thing I'd say.
The second is we've seen tariffs are not new. We faced them in the first Trump administration, faced them in the Biden administration. And what's been taking place over the past several weeks has certainly been telegraphed, at least a lot of it. And I want to come back to something I was talking about earlier. We really leaned in, not just I mentioned in China, but really we've leaned in around domestic consumption-oriented themes globally, services-oriented themes. You look at the three businesses that we invested more in our core private equity strategy: 1-800 Contacts, USI, Heartland Dental, all domestic consumption-oriented, all service or mostly service-oriented businesses. Of course, we're going to have businesses that are going to be exposed to global trade.
I think that's quite normal in a global portfolio. But since COVID, we've had teams that have been laser-focused on doing what we can to diversify our supply chains. So, I think the punchline mark goes, we feel like we're as best positioned as we can. We think we've got the top resources focused on this and embedded with our teams.
We think the connected nature and one-firm nature of our culture helps ensure that the best thoughts are really traveling across the globe in different asset classes. But it's something that we're going to need to be very vigilant on and manage going forward. And I think we're going to be in a period where you're going to see increased volatility on and off over some time. I'd be surprised if we don't.
No, and to your point earlier, certainly, we're seeing the impact of that on capital markets activity, which is off to a bit of a slower start probably than anybody would like. When you think about the M&A environment, where do you see that in 2025, both for KKR as a firm and then specifically for your portfolio companies as well?
Yeah. We do expect and continue to expect the M&A environment to pick up. And the markets are conducive for that. You look at the equity markets, of course, in the US, but even globally relative to other points in time. Credit availability is as high as it's been in some time. Credit spreads are certainly as low as they've been in some time. And we're watching the 10-year. I think the 10-year will definitely play into the monetization environment and the M&A environment. But we talked about on our call last week, we would expect monetizations for KKR to be up in 2025 versus 2024.
And I think our industry expects that as well. As it relates to M&A for KKR, that's a little bit of a different topic. I think probably less environment impacted. I would say we look at M&A in quite an opportunistic way. It is one of the four areas we've talked about from a capital allocation perspective of investing back into our business. But there's not a need to do M&A trade for us, acquisition for us. We have focused, if you look back at the past three or four transactions we've done, past three transactions, Global Atlantic, our partnership with Franklin Square, KJRM in Japan, we've used M&A to acquire as close to permanent capital as it comes in our space.
And so, we're very focused on ways that we can elongate and diversify our form of capital. We are a lot less interested institutionally in other asset management businesses that have temporary or runoff capital, even if it's long-dated in nature. I don't think we're going to be the lowest cost of capital buyer for that type of asset. We have not been historically. We've looked at them all, but that hasn't been where we've leaned in.
Makes sense. Maybe shifting gears for a second to wealth, which is obviously one of the more exciting growth areas, I would say, for you and for the broader industry. How do you think about wealth? How do you think about how to best capitalize on that opportunity going forward?
Today, the individual investor has a ballpark 2% allocation to alternatives. If you believe, and we certainly do, that that number will migrate up to 5%-6% over time, you are talking about trillions of dollars of addressable market. Today, of our $640 billion of AUM, roughly $100 billion comes from the individual investor. And we have really segmented that opportunity in four ways that I can take you through. Number one is we have taken our institutional products and we are selling those to the most sophisticated high-net-worth and family offices.
And we have been doing that for decades and we will continue to do that. Second area of opportunity for us is a little bit newer. It is our K-Suite of products. These are products that are tailored for the high-net-worth, for the individual investor. They are perpetual in nature. We now have vehicles up and running across private equity, infrastructure, real estate, and credit, our four big investing verticals. We are, I would say, well ahead of where we thought we would be at this point in time when we launched our two largest vehicles middle of 2023.
Today, we have roughly $18 billion of AUM in K-Suite. That number a year ago was $7 billion. A lot of momentum and an area where we would expect a lot more growth given the traction that we have and the vehicles that we've developed in our brand and track record. The third area is newer, and that is our partnership with the Capital Group that we announced middle of last year.
And this is to create and distribute hybrid products where Capital Group's going to manage the liquid sleeve and KKR is going to manage the private sleeve. And we are going to collectively leverage Capital Group's really preeminent position on the distribution side for the mass affluent. There's roughly 300,000 financial advisors in the US, and Capital Group touches north of 200,000 of those financial advisors. I think highly unlikely we'd ever build out distribution for the mass affluent.
And even if we were going to undertake something like that, it would take us years before we'd be able to get anywhere close to where the Capital Group is now and the position they have, which is obviously a phenomenal one. And then the fourth area of opportunity for us and our industry is the retirement and 401(k) channel.
I'd say a lot has been made around this or a lot has been talked about around this opportunity over the past several weeks. I think it is a very significant one. I think from your seat, probably a harder one to underwrite in terms of timing. But in terms of the aggregate size of the market, it's probably the biggest of all of those opportunities I just went through. If that is an area that does open up to a greater extent for our space, we think for a variety of reasons that we are very well positioned.
No. With your brand and your track record, for sure. I would be remiss if I didn't ask a quick question on private credit. It's obviously the topic that seems to come up in every session. But again, just how do you think about that from a KKR perspective and where do you see that in the context of your growth paradigm?
Sure. We've got roughly $110 billion of assets under management of private credit. And that's split for us, $70 billion in asset-based finance and $40 billion in direct lending. Sorry, it's $110 billion of assets in private credit. For us, as we look forward, we think there will continue to be growth in direct lending, but where we see the more significant growth given the secular shift that we're seeing is on the asset-based finance side.
It's an area where we've got real industry leadership, and I think we're in the earliest of innings as we think about what the opportunity set is there, and we all get reminded, and some of you would have heard me say this is true, but we all get reminded every 10-12 years that it's not a great business model to put long-dated assets against on-demand deposits.
And you will continue to see as a result, I think, a lot of these long-dated assets shift off of regional bank balance sheets. And the one thing that our industry really benefits from is the duration of our capital. Before you get into underwriting capability and sourcing networks, just the duration of capital, the long-dated nature of our funds, insurance liabilities, permanent capital vehicles, I think gives us a real leg up. So, that's the aspect of private credit that we're the most excited about at KKR.
Makes sense. Rob, this was incredibly helpful. I think we touched on all the key growth areas and really how to think about the firm going forward. Maybe just to wrap up, quick question on what you see as perhaps the most exciting opportunity that the market is not fully appreciating today. As you look forward over the next 12 to 24 months, what do you really see as potential upside?
It's obviously a tough one to answer. But let me maybe go through our business model and get to a direct answer to your question. If you look at our asset management business today, I think the piece that maybe is a little bit less well understood, and I said this at the outset, we do not aspire to be all things to all people. Our business model allows us to be focused on being great at the things that we've already started. And so, as we've talked about taking our business to a trillion plus of AUM and having visibility on how we're going to do that, that's just based on scaling the things that we've already started. It doesn't mean we're not going to start something new, but the bar is very high. And it allows us to be really focused.
And I think, I'm going to use the word execution again. I think our execution will be that much higher as a result. Insurance, we've got all the ingredients to continue to build a really highly differentiated and very economic part of our business on the back of a bunch of the things I went through earlier. I do think some of this is pretty well understood. I think there's areas where we could do a better job providing clarity on the evolution of our strategy. But you don't have to look very far. We've got a peer that's done a really phenomenal job building out their insurance business. And we're going to do it differently, but it does provide quite a roadmap of what the art of the possible is. And we're very focused on ensuring that we're able to execute there.
What I really think is the biggest opportunity for us and one that is easier for us as a management team to see than maybe our shareholders today is just the power of capital allocation given our model. In Strategic Holdings, the new part of our business is a big part of that, including what we announced last week. I think it's why we've got the, I know it's why we have the confidence we do in the very long term, because we've got a business model that very fortunately creates a lot of opportunity for us to invest back into our business that can create recurring and growth-oriented earnings per share on top of everything that we're doing organically across asset management, insurance, and Strategic Holdings.
And as I look out five, 10 plus years, I really don't believe that there's a business model that can compete with that. I really don't. And I think with each successive year, I think it's going to be that much clearer how much power there is in capital allocation and what we can do with it given our enterprise and the impact it can have on profitability over and above everything we talked about across asset management, insurance, and the 18 businesses we have in Strategic Holdings. And so, that is what we as a management team, for sure, that is what I am the most excited about that I think maybe others can't fully see.
That's great. Great way to wrap it up. Again, thank you for joining us. I will definitely take you up on the offer to make you a regular part of this conference going forward. So, thank you very much.
For sure. Thank you all.