How Analysts View These Key Alternative Asset Managers Today
Of the seven analysts tracking Ares Management (ARES) in December 2017, two recommend a “hold,” while two recommend a “buy.”
Blackstone Group (BX) has a forward PE (price-to-earnings) ratio of ~10.6x—the highest among major peers in the alternative asset management industry.
As it enhances its reach in new areas, Blackstone’s management plans to double its managed assets and targets by ~$800 billion over the next five years.
In the first three quarters of 2017, Carlyle Group saw a rise in its expenses to $2 billion, compared with $1.7 billion during the same period of 2016.
Carlyle Group (CG) saw a YoY (year-over-year) rise in total revenues in 3Q17, driven mostly by favorable momentum in the company’s total performance fees.
KKR & Company’s (KKR) KKR Health Care Strategic Growth Fund has had its final closing, the announcement for which came on November 29, 2017.
Carlyle Group’s Real Assets division saw a substantial YoY (year-over-year) rise in net performance fees from $28 million in 3Q16 to $50 million in 3Q17.
Apollo Global witnessed the strong growth of 7.3% in its private equity funds in 3Q17 due to positive momentum among companies in its private portfolio.
Apollo Global’s (APO) Credit Division saw investments of $1.4 billion in 3Q17.
Both Blackstone Group (BX) and Apollo Global Management (APO) reported strong results for 3Q17 in terms of both EPS (earnings per share) and revenues.
BlackRock’s (BLK) effective tax rate for 3Q17 was 31.6%. Its EPS could potentially rise to $6.78 on a flat corporate tax rate of 20%, compared to its reported EPS of $5.78.
Asset managers (XLF) have had a great run in 2016 and so far in 2017, helped by rising broad markets, strong fundamentals driving savings and investments, and lower unemployment rates.
BlackRock (BLK) continues to attract most of its funds from institutional clients, which form 56% of its total assets under management.
BlackRock’s (BLK) outperformance, estimate beats, and new assets have helped the company command premium valuations.
Asset managers (VFH) have had “buy” to “hold” ratings in recent months since equities are expected to be upbeat in the next few quarters.
BlackRock (BLK) paid out dividends of $2.50 per share, a rise of 9% on a YoY (year-over-year) basis.
BlackRock (BLK) posted record margins of 45% in 3Q17, which was in line with the prior year and higher than 43.9% in the previous quarter.
BlackRock’s (BLK) iShares has been one of the top beneficiaries and is expected to keep that position in the upcoming quarters.
BlackRock’s (BLK) retail division has participated in the latest rally of the markets since 1Q17.
BlackRock (BLK), the world’s largest asset manager, has managed to beat estimates in four of the past five quarters, reflecting rising broad markets and consistent flows.