Operator: The next question is from the line of Rufus Hone with BMO Capital Markets. Please proceed with your question.
Rufus Hone: Hey, good morning. Thanks very much. Maybe if you could spend a minute giving an update on your Asia business. You’ve now owned the KJRM business for a little over a year. It’d be great to hear more about how that acquisition’s performing and whether you see any more opportunities to consolidate your position in the region inorganically, and also what the near-term outlook is for fundraising. Thanks very much.
Robert Lewin: Great. Rufus, thanks a lot for the question. Asia remains a core part of our growth story at KKR, and we’ve talked about this in the past for a number of reasons. We feel really good that our Asia business one day will be as big as our U.S. business. So, we’ve got a great competitive position in the marketplace, plus private equity and infrastructure, both of which are the largest in the region in terms of fund sizes. We’ve got real growing businesses across real estate, as well as credit as well. In terms of the KJRM acquisition, that’s off to a great start. And from a strategic standpoint, really doing what we wanted it to accomplish, which is to generate very consistent returns for their existing investor base, which translates into a very predictable management fees for us at KKR.
But much more importantly, in terms of what it does for the rest of our opportunistic strategy and core plus strategy in the Japan market, just markedly changed our approach to what we’re able to do in Japan. And really in terms of one of our big growth engines within Asia is the Japanese market. And our competitive position there is in particular really strong and KJRM really helps cement that.
Scott Nuttall: Hey, Rufus. It’s Scott. I’d say to your question on would we do more M&A in the region and consolidate in that way. We’d be open to it. We’re always looking. So, definitely open-minded. The only other thing I would add is Global Atlantic is also now growing with partnerships in Asia. Something that we’ve been able to do now that we’re together. We announced Block with AXA in Hong Kong. We, of course, announced the Japan Post Partnership this past quarter. We’ve announced some flow partnerships in Singapore is just one more example. And there’s other discussions along those lines. Some are between organic and inorganic, but we do see opportunities to expand our insurance efforts in Asia as well.
Rufus Hone: Thank you.
Craig Larson: Thank you.
Operator: [Operator Instructions] The next questions from the line of Alex Blostein with Goldman Sachs. Please proceed with your question.
Alexander Blostein: Hi. Thank you guys for taking the follow-up. Appreciate it. I wanted to touch on your credit business, specifically asset-backed finance. It’s a place where you spend a little bit more time just communicating to the street of sort of how big it’s gotten over the years, and you’ve got a number of origination platforms that are supporting it. So, as you think about raising capital for those type of strategies outside of Global Atlantic, so whether it’s third-party insurance companies or maybe other institution LPs, what does that look like over the next couple of years? And maybe just remind us what the fee rates are? I’m assuming it’s a — generally a lower fee rate, like separate account type of business, but curious to get more. Thanks.
Craig Larson: Why don’t I start, Alex? So, first glad that you asked about, again, back to the detail we provided on page 11. So, we’ve got $227 billion of AUM in credit and liquid strategies. A key component of that is the $80 billion in private credit. Two big pieces here, the $45 billion in asset-based finance alongside of the $33 billion of direct lending. These are big businesses for us. And so, back to your question, ABF is a massive end market, $5-plus trillion. You have high barriers to entry in our view — a lack of scale capital against this end market. And we have, and we continue to see it, many traditional providers leaving the market and in our view creating a void. And so, we’re finding attractive risk reward, would say that’s true in terms of the high grade ABF strategy, which to date has been led really in partnership with everything that Global Atlantic has doing.
