Strategic Performance Drivers – Management attributes the 11% growth in fee-related earnings to strong fundraising momentum and the increasing scale of partner managers who are raising record-sized funds. – The firm is pivoting toward a ‘solutions-based’ client engagement model,…
veraging its $1.2 trillion ecosystem to provide multi-asset, customized portfolios for large institutional partners. – Strategic positioning is heavily weighted toward AI infrastructure, with management viewing the massive physical requirements of AI—data centers and power—as a significant tailwind for their real asset portfolio. – The recovery in real estate is reportedly accelerating ‘on the ground’ faster than headlines suggest, driven by a lack of new supply since 2020 and significant rent growth in tier-one markets. – Management emphasizes a disciplined avoidance of high-risk sectors, noting that sponsor-oriented direct lending and software exposure remain immaterial to the overall business. – The integration of Oaktree is framed as a strategic move to capture ‘opportunistic’ credit returns as the credit cycle turns and liquidity becomes scarce in traditional markets. 2026 Outlook and Strategic Initiatives – Management expects 2026 to be the largest fundraising year in the company’s history, with year-to-date fundraising already reaching $67 billion. – The outlook for fee-related earnings growth is described as ‘largely secured’ for the remainder of the year, supported by the run-rating of recent mandates and the Oaktree acquisition. – The Just Group mandate is expected to add $40 billion in asset management capital, further extending the firm’s reach into the retirement and insurance sectors. – Infrastructure deployment is expected to remain at historic highs, with management anticipating meaningful first closes for flagship infrastructure and private equity funds in 2026. – The firm is pursuing broader U.S. equity index eligibility, supported by the increased ownership of Oaktree