Hope that’s an helpful overview.
Scott Nuttall: The only thing I’d add, Alex, if you look at what we’ve been doing the last several years, as you know, we’ve deployed several billion dollars to M&A, that’s been quite additive to our fee paying AUM, our FRE, our TDE. So, to Rob’s point, we look at it holistically, look at the relative trade-offs. It’s less about needing to invest in the business to start new strategies or seed new businesses. It’s more about what’s going to give us that highest marginal return on capital, as Rob mentioned.
Alexander Blostein: Got it. Okay. All makes sense. Thanks.
Operator: Our next question is from the line of Glenn Schorr with Evercore. Please proceed with your question.
Glenn Schorr: Hi. Thank you. So, I’m curious to get a little more color on KPAC. I know it’s early. I know it was on one platform in a short period of time in a slow PE backdrop, but you raised a couple hundred million. So, I’m curious what you learned from that one platform in that short period of time. Maybe the timing of the other platform ads. And then sidebar question, is this structure able to be included in 401 Ks if and when we get there? Thanks so much.
Craig Larson: Hey, Glen. It’s Craig. Why don’t I start? Look, I think — let’s take a step back for a moment, and I know that you all know all of this very well, but I think when we look at this opportunity, it’s a real long-term secular opportunity that we had ahead — that we have ahead of us. So, individual investors have not had an easy way to access the Alt space historically. I think that is certainly true as it relates to private equity most specifically. And so, if individual investors have 1% of their assets invested in Alts today, and that goes to 5% over the next several years, that’s $8 trillion to $10 trillion of additional capital that has the potential to flow into alternative products. And as it relates to a number of the points that Rob mentioned in terms of the strength of our brand, relationships that we have, the track record that we bring, all the investments we’ve made in terms of distribution, all of these things are super positive.
And then you layer on top of that, the products creation and creativity that we think that we’ve brought to a number of these products. So, on our last earnings call, we’d noted that we had launched our PE vehicle as you’d indicated outside of the U.S. It closed on chest over, $400 million with distribution expected increase and infrastructure also soon to be accepting capital. And so, 90 days later, here we are with $1.9 billion raised across both PE and infrastructure, which is great. So, it’s ahead of our expectations. I think in terms of lessons learned, I guess I point to three. One, brand again is super important. I think, number two, again, I’d emphasize the product creation point, starting with KREST and as you then see that expansion.
And then finally, I think that we have the ability to leverage the relationships that we’ve earned through KREST as we continue to expand into new distribution channels in private equity and infrastructure. So, hopefully that gives you a sense on that.
Robert Lewin: And Glen, just a quick follow up on the 401 K point, no plans in the immediate future as it relates to that. I do think it’s worth noting though that KPAC is structured in a way that can be distributed through to the accredited investor and not just qualified purchasers. It’s one of those points of innovation that I highlighted in our prepared remarks.
