Good evening, everyone. Thank you all for joining the B of A financial services conference. This is our 33rd year of doing this. This is Craig Siegenthaler, North America Head of Diversified Financials, and it's my pleasure to introduce Rob Lewin. Rob is the Chief Financial Officer at KKR, and prior to CFO, he had a number of roles. He was an investor in private equity. He helped launch their Asia-Pacific 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. Rob, thank you for joining us.
Craig, thanks for having us. Always a pleasure to be at your conference. I believe this is, other than COVID, this is our fifth year running, and so we look forward to making it a tradition. Thank you.
Great. So KKR is one of the largest, oldest, and most diverse alt managers in the world. The business model is also very differentiated. It marries third-party capital with its capital markets business, its insurance company, and Strategic Holdings. Rob, let's start with the macro setup.
Yep.
We're entering year three of the bull market. IPOs are expected to rebound. The yield curve has steepened, and there's record money market AUM on the sidelines. What are your expectations for transaction activity in 2025, and what do you actually think are going to be the biggest themes that develop this year?
Good morning or good afternoon, everyone. You know, we're pretty bullish as it relates to the overall environment for the alternative space as we head into 2025. I think transaction volumes will come up through the year. We think that leads to increased monetizations for the industry and ultimately capital returned back to our clients, and we think that provides a pretty healthy flywheel. In terms of, I think, some of the big trends in our space, Craig, I think continued convergence between asset management and insurance. I think you're going to hear a lot more about private wealth as we go through the year, is a real opportunity for the broader industry and how that will continue to play out. I think asset-based finance is another trend where we see a lot of secular growth and shifting in our industry.
Those would be some of the big themes that I think will play out through the year.
So Rob, I hit on this in the intro, but your model is very differentiated. You have Strategic Holdings, you have an insurance company, you have a large capital markets business, and you marry all that with a third-party AUM business. But, you know, that's just the high-level summary. How do you think your model is differentiated? What did I miss, and what are the key competitive advantages with this special model?
Sure, so we have built out this business model very much on purpose over the past, really, multiple decades, and it's all about how do we get the most out of the content that we create at KKR and ensure that we are able to maintain what makes us very uniquely distinct and drives a lot of alpha across our platform, which is our collaborative culture, and so we've built a business model around three growth engines: asset management, insurance, and Strategic holdings. Very much synergistic with each other allows us to get more economics out of the content, and very importantly, Craig, as part of our strategy, as we think about driving sustained growth from an earnings per share perspective, we don't believe that we need to add a lot more people or operating complexity to our platform to be able to do that.
It will allow us to retain that collaborative culture that will make the flywheel inside of KKR, you know, that much more robust. You look across our business today in asset management, roughly $640 billion of AUM. We've outlined plans to get to a trillion plus, really by just being great at the things we've already started. We don't have any desire or intention to be all things to all people. We don't need to be. That focus is what gives us the confidence that we're going to continue to be able to scale. We look at our insurance business: $190 billion, life and annuity player in Global Atlantic. Plans there to double that business as well. Lots of synergies across our business, whether that's on the asset management side, capital markets, distribution, leveraging our geographic breadth. I'm sure we'll come to that.
Then finally, Strategic Holdings. Strategic Holdings is our newest segment, and it's really about owning businesses for the long term, generating recurring and compounding cash flows as a result. We believe this is a segment for us that's really an unconstrained, addressable market and where we've got a real right to win organizationally. We have no people that sit in Strategic Holdings. It is leveraging the capabilities that we have in our asset management business and our connected and collaborative culture across the firm. So that's how it all comes together. You know, we look at our business model. We've got a lot of visibility in where our growth's going to come from in the next five years. But importantly, our business model provides a lot of visibility around where growth is going to come from in year six through 10 and from year 10 through 15.
It's really allowing us to monetize what it is that we do day to day in a pretty unique way.
So Rob, KKR had a very good 2024. I think you could just see that in the share price as one barometer. But the stock did pull back around four key results last week. Was there anything you thought the markets or investors were sort of missing or overreacting to that quarter?
Yeah. And some of you may have heard this a bit yesterday, but I think it bears repeating because I think it's an important point. And there was, I think, a little bit of confusion in our call last week, Craig. And so let me go through that a little bit. You know, I try and be very deliberate with the words that I say, and we all do on our earnings calls. And I was surprised at the end of last Tuesday when we reported earnings. Craig Larson walked into my office, said, you know, I think a lot of investors are asking questions as it relates to whether or not we're backing off some of the guidance we had prior communicated as it relates to our FRE growth or in some way taking a more hesitant view around management fee growth.
To be very clear, that was not the case at all. It was actually intended to be quite the opposite of that. Let me explain where I think some of the confusion came in. When I was articulating where our management fee growth was going to come from in the future and our visibility around management fee growth that we need in order to beat by a wide margin the guidance that we had put out on FRE growth for 2026, I had mentioned in other words that we need to go out and execute in order to be able to achieve that. I think what some heard is, you know, that we need to go execute might be a form of, you know, we're not sure that we're going to be able to do that.
I want to just make sure that we clear that up. As I mentioned, there is quite the opposite of that. What I was trying to say, of course, we need to execute. All good companies need to execute. But we as a management team today have more confidence around our ability to execute in order to be able to achieve, you know, the targets we've laid out. And I think as a management team, we've got a lot of credibility if you go look at some of the guidance we've provided in the past as it relates to our ability to go deliver on that. And so hopefully that helps clear it up. I think that was one thing that came out of the call that we were pretty surprised by.
Now, I'm glad you said that because we also got a lot of inbound on that topic too. So I think it does clear it up. Let's talk about long-term growth. KKR is now in a flagship fundraising cycle. North America XIV , Global Infra V . There's an Asia buyout fund in the future. Some big funds are in the pipeline. The retail channel looks to be accelerating, and you're adding more product there.
Yeah.
And Global Atlantic in the retirement channel also is scaling too. So the growth outlook looks pretty strong. What are you guys thinking about it now?
Yeah. Maybe let's just stick with capital raising for a second. Last year, we raised $114 billion of capital. And I think there's a couple of stats in there that I think are helpful to frame what the future could look like. Of that $114 billion of capital, roughly 15% came from more flagship funds in nature for us, so relatively low percentage. And approximately 5% came from our traditional private equity product. And so as we look to the future, where we're going to be raising capital around private equity, where we're going to be raising more flagships, obviously, we're in the market today with our Americas Flagship, our Global Infra Flagship. We'll soon be in the market with our Asia Infrastructure Fund that hopefully will be a flagship of tomorrow, given the momentum in that strategy, Asia Private Equity to follow.
I think there's a lot from a near-term flagship perspective that makes us pretty enthusiastic about what the outlook can be on the capital raising front, in addition to the 30 or so additional products that we're out capital raising for. Private wealth is an additional opportunity on top of that, which I'm sure we'll discuss as part of this discussion today. But if you look at KKR right now, in 2024, we generated roughly $3.5 billion in management fees. And interestingly, $1.4 billion of that is in our private equity business line, $1.1 billion in credit, and $1.0 billion in real assets. And we've grown our management fees at a CAGR of 19% over the last three years. Craig, I know you'll know this.
You're not going to find an alternatives manager that combines both the growth we've had in management fees and the diversification of our management fees. And I don't think it's a stretch to think that we'll continue to have very robust growth in management fees. And we can be sitting here at some point in the future where roughly a third of our management fees will be in private equity, a third in credit, and a third in real assets, given the direction of travel that we're on as a firm today. So really, I think a combination of growth and diversification that's unmatched in our space.
So I wanted to talk about KCM, Capital Markets Business.
Yeah.
In the fourth quarter, you hit $1 billion of fees. The ramp there has been really nice. There's a cyclical and maybe a longer-term secular component of that. But maybe talk about how that's been diversifying away. It used to be more, I believe, of a private market, domestic business. Now it's more international. There's infrastructure, private credit, real estate in there too.
Yeah. Just to clarify, I think you said $1 billion of revenue in Q4. It was $1 billion of revenue for 2024. Craig's right. We've been at the Capital Markets Business now for almost two decades. We started in 2006. It is a very diversified platform, really, across the full debt and equity suite of products, structured products as well, big businesses in U.S., Europe, Asia. And really, we've got deployed teams against private equity, infrastructure, real estate, and credit, and now insurance as well. So quite a diversified business. 2024 was a great year in terms of revenue production of $1 billion. You know, four years ago, the business was roughly half the size. However, I think if you polled our management team, I think we'd all tell you that we're a lot more proud of what the business did in 2022 and 2023.
When the capital markets were largely shut, our capital markets business still did plus or minus $600 million of revenue in each of 2022 and 2023. So I really think based on the diversification of that business, which you articulated, we've taken the floor up in our capital markets business materially over the years and also showed in 2024 in a healthier capital markets environment, but clearly not a really robust one. We were able to spike revenue to the upside like we did through the course of the calendar year, and so as we look forward, we've got a lot of confidence in this business. We think we're really well positioned. I think there's a lot of identifiable growth opportunities still available to us.
We haven't had middle market buyouts really come back, but we think we're well positioned in the third-party part of our business to continue to take share there. We've talked about the synergy with Global Atlantic in the hundreds of millions of dollars from an opportunity perspective. Last year, as part of our $1 billion, roughly $150 million of that came from our structured products business, of which GA-related deals was roughly a third. So we're just getting going there. And clearly, as KKR does more around the globe, our capital markets business is biased to grow alongside of that.
So maybe just sticking with GA, there's many different sources to grow liabilities around the world there. Retail annuities in the U.S. might be number one, but there's PRTs, there's reinsurance. And Japan's been a market that's been more attractive, sort of heating up too. So as you look around the world, how do you think about growing that liability base?
Yeah. So maybe let's just start with GA's distribution footprint today. So you've got the individual business where GA's got relationships with 200+ bank and broker-dealers and is able to move in and out depending on the pricing environment there. You know, my guess we're going to talk about the 401(k) and retirement channels as it relates to asset management as part of this discussion. But the opportunity in the 401(k) channel for annuities is a here-and-now opportunity. So you've got multiple avenues of distribution on the individual side. Then you look at the institutional side of our business. You've got block reinsurance, both domestically and for us, you know, our pipeline around Asia-Pacific opportunities, you know, principally in Japan, is one that continues to build and is a strategic priority. You have flow reinsurance. You have the PRT market. You also have funding agreements.
And so we've got multiple different channels to be able to move our capital in and out depending on the opportunity that we see. And I think it's having that diversified base of distribution that allows us to feel good about what the outlook at Global Atlantic represents for us going forward because we can be nimble on how we move the capital around based on that opportunity set. And you're just not dependent on one distribution channel.
Let's talk about Ivy, which will help you grow GA faster with a little bit less capital. Maybe talk about what you're doing with that business.
Maybe for the benefit of everybody in the room, Ivy is effectively, it is reinsurance sidecar capital that sits alongside Global Atlantic and invests in the same liabilities and assets that Global Atlantic invests in. And it's structured very much in a similar way to a private equity drawdown fund in the sense that it pays Global Atlantic management fees and carry based on the performance of the asset and liabilities at GA. Today, we have just under $50 billion of capital in our Ivy business and related entities. It is a priority for us to grow this business. And we've really, as we think about leveraging our 300-person distribution team at KKR, have thought about Ivy and our insurance vertical just like we think about private equity, infrastructure, real estate, and credit.
As we're approaching our global investors today, we're not just talking about those four investing verticals. We're talking about a fifth vertical in insurance. It's one of those synergies where we could marry what we're doing at Global Atlantic with what we've already built out at KKR on the distribution side that we think's a really accretive way that our two businesses can work together going forward. You know, while I think the sidecars have been around for a long time, there's not that many competitors in the market, frankly, that can go leverage the capability set both inside an insurance business and asset management business, which is what we're doing, and then have the salesforce alongside of it to be able to distribute the product. There's probably just one today.
So let's spend a minute on Strategic Holdings. This is one of your businesses that has almost an infinite TAM, which is kind of exciting on a long-term basis. How does your balance sheet and core private equity business fit in your model? What do you think will be the contributions to growth from this business? And also, you recently announced that you're upping your stake in three different companies inside of that business. So maybe a little color on that too.
Yeah. Thanks for the question. Why don't we start with what we're doing in Strategic Holdings at a high level? And so today, we have 18 businesses that we own in Strategic Holdings that are part of our core private equity portfolio. We mostly control those businesses between our direct stake as well as through strategic partners in the fund capital format. Those 18 businesses, we own on average directly approximately 20%. Our 20% interest in those 18 businesses represents $3.7 billion of revenue and $900 million of EBITDA. So very sizable. And, you know, we feel great about that portfolio. And what we announced last week is that we are increasing our ownership in three businesses we've owned for a long time: USI, Heartland Dental, and 1-800 Contacts.
And as part of that, we're increasing our guidance for Strategic Holdings that we had previously laid out to generate $350+ million of operating earnings by 2026, $700+ million by 2028, and $1.1+ billion of operating earnings by 2030. Just to put that a little bit into context, you know, a year ago, we had a pretty de minimis amount of operating earnings in Strategic Holdings. And we're giving guidance and visibility that we can generate $1.1 billion of operating earnings by 2030. And we have no people that sit in Strategic Holdings today. So it speaks to the synergy that exists across our platform. I think in addition to that, I think there's probably very few corporates that are willing to put themselves out there with six-year guidance. It speaks to the durability of the cash flow, the growth orientation of that cash flow.
And we're just getting started. There is the reality. I think it's also worth mentioning that as part of the transaction we announced last week, we did that alongside one of our large strategic partners, Chubb, who's talked publicly about this partnership. They've been a great partner to us here. They've been with us really since day one of the strategy, and I think have benefited alongside of us with the growth and of the portfolio and the returns that they've provided. And they're big believers in what the go-forward looks like. And so it's been a great partnership, and it's been great to see them come alongside of us in this most recent transaction as well.
Rob, I know you've been very focused on building out the private wealth channel. And I know we did get to this topic. You've added a lot of products recently. You've been using it to raise capital for some of your drawdowns. From a global standpoint, maybe what are you missing? What would you like to add?
You know, the individual investor today has roughly a 2% allocation to alternatives. I don't think it's a stretch to believe that over time, the individual investor's allocation to alternative will increase to 5% or 6%, mid-single digits, which could be, you know, several trillion dollars of addressable market. It's a huge opportunity for our industry. Today, we have roughly $100 billion of capital from the individual investor. We're approaching that area really in four ways. Number one, we're taking our institutional products and we're selling that directly to family offices and the most sophisticated high-net-worth. Now, that's a part of the business we've been in for decades and we'll continue to do. Second way we're approaching the market is through our K-Suite of products. These are specifically designed for the high-net-worth individual, perpetual products.
We now have products up and running across our four big investing verticals: private equity, infrastructure, real estate, and credit. There's a lot of opportunity there. We're just getting going. We're ahead of our expectations. Today, we're at roughly $18 billion of AUM in K-Suite. A year ago, that number was roughly $7 billion. And so a lot of growth in a short period of time, but also feels very measured in the context of our origination footprint. The third area of opportunity for us, which really hasn't begun formally at least, is we signed up an exclusive strategic partnership last year with Capital Group to build hybrid products together where Capital Group will manage the liquid sleeve and KKR will manage the private sleeve. And we've announced two credit-oriented products that should come to market in the first half of 2025. We're really excited about that partnership.
The Capital Group team is investing a lot of time in the partnership. The KKR team's investing a lot of time, and I think it's fair to say that both organizations, given our scale, aren't investing so much into this partnership if we both don't think that the opportunity in front of us is very significant. To be clear, we think this addresses more of the mass affluent market, whereas K-Suite is probably, not probably, but is really at that accredited investor on up, so-called 10% of households. We think the Capital Group partnership really solves for the other 90% of households. The fourth opportunity for our industry and for KKR with the individual investor is really in the retirement channel and 401(k). That's not an opportunity that's one of any scale today.
A lot has been talked about recently around whether alternatives can and should fit in the retirement space. We do think that it is likely over time that they will. I think from your seats, probably a harder thing to underwrite as it relates to timing, but the addressable market there is very significant relative to the other opportunities that we've talked about. And so we're positioning ourselves in a way that can access that market and provide, you know, what we think is very compelling investment returns to the retirement channel in a way that really fits with their objectives of saving for the long term. So those are really the four ways that we're approaching the market, Craig. We don't think we're missing anything. Much like our asset management business, you know, we don't want to be all things to all people here either.
I don't think it's likely we're going to have 10 or 15 products on the shelf. I think more than likely we're going to, you know, really try and deliver amazing client experiences and generate real scale in the products that we already have. I'm sure we will add a small number over time, but it's not like we have five to 10 products on the docket for the next couple of years in our K-Suite of products. As it relates to distribution, and we've talked about the Capital Group piece, we've talked about K-Suite. I think on the K-Suite side, I think there's probably more resources that we will be adding as it relates to RIA distribution. And we've got a peer who's done a phenomenal job building out RIA distribution and have scaled really nicely there.
And then there's more I think we can do internationally, particularly in markets like Japan, where our brand is really strong and add from a distribution resource there as well.
Rob, I'd like to dig a little deeper on the retirement channel. What do we need to see from regulators in order for that to really take off? Because right now, there's a lot of focus on choosing the product with the lower fee, not necessarily the highest sort of net return. And there's also a daily liquidity requirement. And if that does open up, is Capital Group your partner there? Because they're already really big in that channel. Or could we see KKR launch pure KKR products into that channel?
Listen, I think probably the biggest unlock there would be some form of a safe harbor from the Department of Labor. You know, there's a big focus on higher fee products, but maybe counterintuitively, really not a focus on what the net return is to the end individual. So I think some form of a safe harbor there is, you know, what we'd all expect to be able to open up that channel in a more material way. It just makes a lot of institutional logic where you think about the alternative space where our products are most relevant are against the longest dated liabilities. The longest dated liabilities exist in the retirement channel. We'll see. As I said, it's a harder one to underwrite from your perspective.
As it relates to the Capital Group, listen, it's been a wonderful partnership so far for us. They do have one of the fastest growing target day funds out there. As we build product in the hybrid space together, we certainly have an eye towards what the retirement channel can look like with these products. And, you know, our hope here, and Scott talked about it on our earnings call last Tuesday, is that we would expect to do more over time with the Capital Group. It's the relationship and the partnership is ahead of both of our expectations at this point.
Currently, KKR is the largest private market manager in Asia. I believe number one private equity business, number one infrastructure business, might be number two in real estate. What does that business look like beyond that today?
Yeah.
Where would you like to take that?
Sure. Our Asia business is roughly $70 billion of AUM today, close to 600 people, eight offices, and really pan-Asian in nature. And so we're not dependent on any one market or geography across the board. I've really built our teams all through Asia-Pac. Some markets in Asia-Pac might be more interesting than others at any point in time, and we're able to shift resources around depending on those opportunities. You know, one of the things we've talked about is we believe one day our Asia business can be every bit as big as our U.S. business, which is saying quite a bit around what we view as the long-term potential. And there's a few reasons for that. Number one, if you look at the next 10 years, we would expect more than half of global GDP growth to come from Asia-Pac.
Number two, alternatives are still well underpenetrated in that part of the market. Call it 9% penetration. If you look at Western markets, they're closer to 20%-25% penetration. And you said it, Craig. Our competitive positioning in that part of the world is as good, if not better, than anywhere else. And number one franchise in private equity, number one franchise in infrastructure, I believe the largest private credit fund in a growing real estate business, in addition to, you know, all that we can do in the insurance space where we've already done six transactions and signed up a long-term strategic partnership with Japan Post Insurance. So there's quite a bit for us to do in that part of the world. And we've got, you know, quite a bit of resources devoted to continuing to build out and extend the leadership position that we're fortunate to have today.
So sticking with Asia for a second, it looks like Japan might be the most exciting market today just based on transaction announcements, maybe followed by India, but your business is pan-Asia. So you can take your funds and sort of pivot or into areas where you see the highest total returns. Maybe talk about, you know, how that works.
Yeah. So it's interesting. You know, I lived in Asia for five years from 2005- 2010, just as we were starting out our business. And there was a lot more activity in different markets. We had a pan-Asia fund, and we were able to lean into areas like China, which is a smaller part of our business today as an example. And we weren't doing much, if anything, at the time in Japan. Today, Japan is the largest opportunity for us. We've got a couple hundred people on the ground in Tokyo, big private equity business, big real estate business, big insurance opportunity as we've talked about.
You referenced India as well for very different reasons, of course, than Japan, but we're quite bullish on the opportunity in India, particularly in private equity and in infrastructure, but have teams in Korea, Australia, Southeast Asia, as well as China as well. And we're able to pivot both the resources and the capital to the best risk-adjusted return on behalf of our clients. And as you noted today, Japan represents the largest area of opportunity from a deployment perspective. And that's where I would say the most amount of our capital from our recent private equity funds has gone to.
I had a private credit retirement question. How, you know, what does your origination capacity look like that sort of feeds Global Atlantic today? And if the banks have more capital deregulation, could we see more competition in that ABF market?
Yeah, I really don't think it's a regulatory question so much on competition for capital. I mean, there was a high regulatory environment a couple of years ago, and we had that regional bank crisis. We get reminded every 10 to 12 years that putting long-duration assets against on-demand deposits is not a great business model. One of the things that our industry really benefits from and has bigger competitive advantage as any is really the duration of our capital, whether that's in permanent capital format, long-dated insurance liabilities, or long-dated drawdown funds. Before you get into other competitive advantages, like the asset-based finance, you know, operating platforms we have creating flow or the investment talent that we have available, it's the duration of capital that is truly a big differentiator.
You saw that play out for the past decade in the direct lending space. We're starting to see that play out secularly in asset-based finance. We talked about it right at the outset of this discussion. We see real secular growth there playing out in a way that looks like direct lending six, seven, eight years ago. Our clients are starting to devote allocations to asset-based finance in a way that they started doing six, seven, eight years ago to direct lending. This is a real area of opportunity for KKR. We've got roughly $70 billion of capital today in asset-based finance. I think real leadership position in a market that'll be really secularly growing. We're looking to take advantage of that market leadership position. We think scale really matters in the space, much like it continues to in direct lending.
We're leaning into that opportunity across our client base and across Global Atlantic.
So with that, we have time for one question from the audience. Let me just please raise your hand if you have a question.
I wanted to touch upon, Craig, something you mentioned earlier on Strategic Holdings. So I think back in 2018 or so, there's a lot of skepticism that Scott, Craig, and Bill faced about the balance sheet in general. They outlined a good framework, I think, in the 2018 Investor Day about how they can compound that balance sheet by effectively seeding the various funds. Fast forward today, I think the team has proven the market wrong on compounding the balance sheet. It now feels like you guys have matured in terms of the number of products and funds that you have, and you're moving more towards direct investing in Strategic Holdings. Two questions. One, should we think about that compounding that you guys have been so successful at for a couple of decades any differently now? Number one.
Number two, and hopefully this is not so much of a stretch, is this more aligned with more of the Berkshire Hathaway model going forward? Is that how you guys are thinking about it, or am I thinking about it incorrectly? Thank you.
Yeah. Thanks, Farron. So a few thoughts. You know, if you go back 10 or so years ago, we were investing a lot of capital back into our funds, as you noted, and our early stage funds as we were scaling those businesses. And we thought two things would be true. We thought we'd be able to scale our asset management franchise quicker by virtue of seeding those newer businesses. And we did believe that if we generated a high level of returns, that ultimately we'd get a multiple on those returns. I think what we've learned over the past several years is we got one of those things right, and we got the other one wrong. We absolutely accelerated the growth of our asset management franchise by seeding those funds. But the market is never going to pay a fair multiple on episodic earnings.
And so several years ago, we really shifted our capital allocation framework to investing much more back into KKR to generate recurring and growth-oriented earnings per share. And so we've talked about four ways that we're going to do that. One is invest more in Strategic Holdings. Two is insurance. Three is M&A and four is share buybacks, all of which generate recurring and more permanent earnings per share growth. And so as you think about Strategic Holdings specifically to your question, we're not trying to be Berkshire Hathaway. In fact, our business models in a lot of ways are, of course, very different. But the one commonality between what we're doing in Strategic Holdings and their business is investing behind really high-quality businesses and generating compounding and recurring and growth-oriented cash flows.
And as we look at the Berkshire model, you know, it's very clear that they're operating in far less constrained markets than the asset managers are. If you just look at the relative size of Berkshire versus every asset management business combined, roughly the same size. And so, and Craig said it, it is really an unconstrained, addressable market in TAM. And it is an area where we think we've got a real right to win. We think we've got the preeminent private equity franchise out there. We believe our one-firm connected culture really allows us to lean into that opportunity in a way that it's hard for others to be able to do. And I think this is the important thing. This is very much an end for us. Lots of opportunities to organically continue to scale our asset management business.
We talked about the organic growth we've had in management fees and the diversification. We've got all the ingredients in insurance to continue to build a unique and highly economic insurance franchise that's got a significant amount of synergy across our platform. And what we're doing in Strategic Holdings, it's an add-on on top of that. And it's why we're so convicted that our business model is the right one. Because as we look out in the future, and I think with every successive year, it's going to be that much clearer that in order to achieve that long-term high and sustained growth, you need multiple different engines to be able to do that. And we've got those available to us at KKR.
And so that value of that incremental dollar of capital for us is super powerful as it relates to what it can do to driving earnings per share growth for our shareholders.
Rob, with that, we are out of time, and we wrapped up day one of our conference. But Rob, thank you very much for joining us.
Yep. Great. Thank you for having me. Thank you, Alex.