Q3 has seen a meaningful acceleration in activity across the market. US MandA activity is up +100% in July/Aug. vs the same two months in 2024 while IPO activity is at levels unseen since 2021. Managers are pointing to a busy H2-25 and 2026 and potential record realizations. Equity markets are near all-time highs, credit spreads are at decade-lows, and base rates are decreasing around the world. We continue to prefer firms most exposed to near-term perf. fees, fund raising and secular tailwinds including AI Infrastructure, Asset-backed finance, Asia, Insurance and Wealth. Prefer European and more cyclical names With evidence mounting of a potential strong acceleration in capital markets activity, we have a clear bias for the more cyclical names in our coverage, with exposure to equity/infra/real estate over credit. We retain our preference for European names, which offer the best combination of i) good long-term outlook, ii) large outperformance potential on performance fees vs consensus and iii) valuations being broadly in-line with the L3Y averages. Maintain preference for EQT (+) and Bridgepoint (+) in Europe EQT and BPT remain our preferred names. Both have seen strong value creation, with significant newsflow around deal activity. This supports fundraising and upside risks to carried interest, which could drive upside to consensus and a re-rating. We also like CVC (+) although flagship fundraising will not come back until H2-27. CVC has materially de-rated vs peers since H1-25 results in early Sept. and it looks like an attractive entry point. KKR (+) and TPG (+) remain our top picks in the US KKR continues to track well ahead of their 2024 CMD targets ($4.5 2026 DE p.s.). FRE growth is coming through as projected with strong growth in flagship fundraising, K-Series products, and insurance. Q3 intra-quarter monetization highlights the resilience of the business model with near record levels of carried interest. KKR is trading at 20x 27e implied...