Blackstone Group Inc (The)

Ares Capital (ARCC) posted EPS (earnings per share) of $0.43, beating Wall Street analysts’ estimate of $0.39 in 3Q16.

In 2015, fund managers took advantage of lower valuations and the availability of a record dry powder in order to make fresh investments at lower valuations.

Ares Capital’s (ARCC) portfolio totaled $8.7 billion at fair value as of September 30, 2015. Its total assets stood at $9.2 billion.

In a private equity fund, you just have to put in the money, and the fund takes care of everything else.

Berkshire Hathaway has doubled its earnings and balance sheet potential since the financial crisis of 2007.

Major mutual funds prefer Berkshire Hathaway (BRK-B) over private equity firms and asset managers like Blackstone (BX) and BlackRock (BLK).

Blackstone (BX) generated revenues of $2.7 billion and economic income of $1.8 billion for the year, backed by strong performance of BCP V and BCP VI.

For the fourth quarter of 2014, KKR reported a net loss of $0.6 million, compared to net income of $277.9 million in 4Q13.

KKR has institutionalized the process of creating value in its portfolio companies through KKR Capstone.

KKR has a diverse revenue model, making fees for providing investment management to its funds, investment vehicles, managed accounts, and finance companies.

KKR structures its investment vehicles as a partnership or combination of domestic and overseas partnerships that contribute capital toward the fund.

Blackstone (BX) manages a total of $73 billion assets in the private equity segment and has generated an annual return of 16% since its inception.

Blackstone’s performance fees have increased more than its basic compensation costs because the companies in which it invests have performed so well.

The company’s revenue model is based on charging management and performance fees for managing the portfolios in its investment advisor firms.

A partnership structure has general partners that make investments and operational decisions relating to the conduct of the fund’s business.

Alternative investment management attempts to outperform the major indices, instead of replicating returns as is the case in passive fund management.