Primer For Asset Management Firms?
Reposting from ER forum to see if anyone has it here.
Does anyone have any resources on learning how to value asset managers like Blackstone, KKR, Carlyle, TPG, Brookfield, etc.?
A primer would be very much appreciated. Or what are the relevant metrics to look at for
comps?
Any insight into how to value these companies would be useful too. I see too obvious revenue streams, management fees and carry. But how else to value these would be helpful.
Thank you very much.
Hi Analyst 1 in PE - Other, yes, I'm a bot, but I'm also good looking. Hopefully, these threads help you:
More suggestions...
I hope those threads give you a bit more insight.
bump
I would say (others tell me if I’m wrong) that ROA would be an especially important metric to look at.
Expense growth, investment performance, and fundraising are going to be the key drivers for the funds you named with the wild card being strategic M&A. You need to get into the weeds and understand exactly how carry is allocated between the company and employees. A large percentage of income the last few years has been returns on carry/co-invest so factor your view of the sustainability of these returns into your valuation.
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