Kelly Granat

And in terms of the management team of the company that's running it.

And in terms of the management team of the company that's running it.

So I think it's, Change in leadership, it's a new product that the market doesn't appreciate fully in terms of its capability, how big it can be, how accretive it is to margins and returns, how little capital it requires, ways to leverage the core IP of a business in new channels, in new products.

So I think it's, Change in leadership, it's a new product that the market doesn't appreciate fully in terms of its capability, how big it can be, how accretive it is to margins and returns, how little capital it requires, ways to leverage the core IP of a business in new channels, in new products.

the value of distribution to the earlier conversation and how that's underappreciated in certain businesses and the ability to flow other products, other services into that. Or, you know, sometimes it's just the benefits of scale. The companies get to a certain size and then their market power step functions, right? And

the value of distribution to the earlier conversation and how that's underappreciated in certain businesses and the ability to flow other products, other services into that. Or, you know, sometimes it's just the benefits of scale. The companies get to a certain size and then their market power step functions, right? And

And then that somehow improves the value proposition and the flywheel of what they're doing in a way that the market doesn't fully appreciate. And we see this now, I would say, like in the alts space, for example, where these businesses are now, you know, they're all mostly public and that's new.

And then that somehow improves the value proposition and the flywheel of what they're doing in a way that the market doesn't fully appreciate. And we see this now, I would say, like in the alts space, for example, where these businesses are now, you know, they're all mostly public and that's new.

unparalleled customer service, product innovation, opportunities for talent development, new channels of growth, it's spinning on its own in terms of this flywheel, right? In a way that I don't think anybody could have really anticipated. And what's interesting about these is,

unparalleled customer service, product innovation, opportunities for talent development, new channels of growth, it's spinning on its own in terms of this flywheel, right? In a way that I don't think anybody could have really anticipated. And what's interesting about these is,

the bare case on them because they're a new asset class as public companies is we haven't really been through like a big cycle. So how will they perform? And then the other piece I think the market struggles with is how do you value the carried interest part of their revenue model, right?

the bare case on them because they're a new asset class as public companies is we haven't really been through like a big cycle. So how will they perform? And then the other piece I think the market struggles with is how do you value the carried interest part of their revenue model, right?

Everyone can value management fees and make a projection around how AOM will grow, but what do you pay for that, right? And so that's interesting to me because we can do work on that. We can have a point of view on that. We can look across cycles, look across products, how they're growing and think about how funds perform.

Everyone can value management fees and make a projection around how AOM will grow, but what do you pay for that, right? And so that's interesting to me because we can do work on that. We can have a point of view on that. We can look across cycles, look across products, how they're growing and think about how funds perform.

and have a thoughtful analytical answer to that question, but there isn't an answer to that question yet, and these are still under-owned relative to all of the big institutions that have to index, that have to own these things, and will continue to have to own them in bigger size as they grow.

and have a thoughtful analytical answer to that question, but there isn't an answer to that question yet, and these are still under-owned relative to all of the big institutions that have to index, that have to own these things, and will continue to have to own them in bigger size as they grow.

And so the idea of a new asset class is sort of interesting to me, even though Blackstone's in public for a while, but all these companies are newly public in the last decade, and I think the world is still figuring out how to analyze and value them as public companies.

And so the idea of a new asset class is sort of interesting to me, even though Blackstone's in public for a while, but all these companies are newly public in the last decade, and I think the world is still figuring out how to analyze and value them as public companies.

We own a lot of one-off ideas in non-bank financials. So the alt is one example of that. But we have a number of positions of single stock, not thematic companies that are doing really interesting things online. One is around transformative M&A at scale. One is around product innovation. One is around AI that's not an AI business, but is using AI to thoughtfully do things inside of a sector.

We own a lot of one-off ideas in non-bank financials. So the alt is one example of that. But we have a number of positions of single stock, not thematic companies that are doing really interesting things online. One is around transformative M&A at scale. One is around product innovation. One is around AI that's not an AI business, but is using AI to thoughtfully do things inside of a sector.