In terms of forward-looking indicators. AUM could be one, but I think it’s really the scale and breadth of what we’re doing across the firm or maybe more the breadth of what we’re doing across the firm, as opposed to necessarily the scale. It’s our ability to take share in the third party part of our business where we think we’ve got some real competitive differentiators versus the marketplace. I think those are more what the indicators are to watch for growth than necessarily what the AUM is for the firm. But thanks for the question. It’s a part of our business that we feel really good about right now, the experience of the past 21 months relative to what it could have been or what it would have been in past cycles that really speaks to what our team has built over the past 10 plus years.
Scott Nuttall: Yeah, thanks for the question, Stephen. There’s no doubt the baseline for the capital markets business has gone up materially over the last few years. I think AUM is one metric you could look to. You could also look to deployment. And frankly, you could also to some extent look to monetization, as the capital markets business often participates in particularly our public market exits. So I’d probably look at those few things. As Rob said in the prepared remarks, we’re seeing activity pick up in the fourth quarter across those areas. So we’d expect that to flow through to the capital markets business as well.
Operator: Our next question’s from the line of Alex Borstein with Goldman Sachs. Please proceed with your question.
Alexander Blostein: Hey, good morning, everybody. Thanks for the question as well. I was hoping we could talk for a couple of minutes around the interplay between your deployment comments in the coming quarter and the quarters ahead. And the flagship fundraising cycle, especially as it relates to some of the bigger funds like the Global Infra in North America and Asia. So the North American and Asia, particular still seems to have lots of dry powder. So maybe help us frame what kind of deployment outlook you’re seeing for those strategies, and how that informs your view on when you can come back to the market with the next impetus? Thanks,
Craig Larson: Hey, Alex. It’s Craig, thanks for the question. So a couple of thoughts here. First, when you look at the fun table in the back of our press release, the numbers you see on an invested basis will, if anything, be understated, as if we have dollars that are committed to an investment, those dollars actually won’t show up in that table until those dollars are actually called and invested. So I think as you look at where we are in terms of the status of those funds, fraught [ph] and invested in committed basis, we’re actually farther along than you might think that just by looking at those — at that table on a face value. And in terms of broad timing, nothing to announce specifically here. But we do expect over ’24 and ’25, that we will be active in both of those and that activity will supplement infrastructure for us, which is a front burner topic, as well as climate and on those last few we expect we’ll be able to give some updates on those in the first half of next year.
So again, just feels like our fundraising team is going to continue to be very active.
Operator: Our next question comes from the line of Patrick Davitt with Autonomous Research. Please proceed with your question.
Patrick Davitt: Hey, good morning, everyone. So I appreciate the strong trends at Global Atlantic you highlighted. But the May deck they put out suggested some fairly significant offsetting outflows there. So understanding you have $13 billion coming in, in 4Q But could you also give a little more specifics on how the regular way retail flows versus lapses and other outflow items have been tracking at Global Atlantic? Thank you.
Robert Lewin : Yes, Patrick. Thanks. Thanks a lot for the question. As we look forward in our business, really, the way I think about it, is in regular way organic part of our business, in the individual side, as we look at ’24 that could be in that $10 billion to $15 billion range of organic flows. The institutional part of our business, again, more in that organic flow basis, probably in that plus or minus $10 billion range. And the outflows call it in the mid-teens. And so on a net basis, organically, we feel like GA should have, call it $5 billion to $10 billion of organic growth next year. Now you layer on top of that block activity as an example of the MetLife Block, which is all incremental and upside to that. As we look at our pipeline on the block side, it feels as good today, as it has since we started our ownership of Global Atlantic.
We’re seeing some very specific deals out there where we can really partner with close relationships and be able to come up with win-win solutions for both us and our clients and partners in that space. And so that’s really how I would think about Global Atlantic and its ability to grow over the coming 12 months, both organically and then on the block side. We continue to see real momentum there, offset, of course, as you noted, by regular way withdrawals.
Scott Nuttall: Yes. The only thing I would add Patrick, because I wouldn’t get too focused on any shorter period of time, since the deal was announced in 2020 GA’s assets have gone from $72 billion to now pro forma for MetLife, $158 billion. So we’ve meaningfully exceeded all of our expectations in terms of net growth and we expect to see very consistent trends going forward.
Operator: Our next question is from the line of Brian McKenna with JMP Securities. Please proceed with your question.
Brian Mckenna: Great, thanks. So you’ve recently announced a partnership with a life science investment firm. So could you talk about this investment a little bit, what the broader opportunity is within life sciences, how this partnership tellers growth in this part of the market? And then how it plays into the longer-term healthcare strategy at KKR?
Robert Lewin : Yes. Thanks for the question, Brian. I’ll start. And so I think as you know, we’ve got a $4 plus billion healthcare growth strategy at the firm. We’ve got a big private equity focused on the healthcare space and our investment in Katalio [ph], which is really a leading life science investment firm at the more earlier stage, is a real partnership that we think can help make their business better, and then also make our business better from an origination perspective. And we think we’ll get a very nice return on our capital based on their business growth and the ability to help originate flow for both our healthcare growth strategy as well as potentially our private equity strategy, maybe strategies across our credit business, a big reason why we did that transaction.
Scott Nuttall: Yes. The only thing I would add, Brian is, we started our health care growth strategy a handful of years ago. That has exceeded our expectations to date. There’s really two areas where we’ve been focused on leading from the standpoint of just newer business creation more recently. One is climate, which the guys mentioned, and the other is this life sciences space where we think there could be a meaningful opportunity for us over time. Katalio and that partnership is just part of that effort.
