Results for “Alts”

Morgan Stanley | RESEARCH Alternative Asset Managers NORTH AMERICA INSIGHT | ¥ Can Alts Unlock Value with C-Corp Conversions ? e think APO could unlock the most value by converting to a C-corp with 26% in our upside case vs. -14% in our downside case. ARES could be the firs...

…8: Exhibit 49: Covered Alternative Asset managers NTM Relative P/E Covered Alternative Asset managers NTM Absolute P/E Alts NTM P/E Ratios Relative to Trad. AMs and S&P Alts P/E Ratios 500 20.0% Alts NTM P/E Relative to Trad. ——-Alts NTM P/E Relative to S&P 500 sede Alts Avg. F...

…s change, but conversion could make a meaningful difference by: 1) Expanding the universe of eligible investors in the Alts, 2) Alleviating the tax complexities of current K-1 tax reporting, 3) Unlocking value via multiple re-rating, particularly for manage- ment fee-related ea...

Morgan Stanley | RESEARCH Executive Summary Will the Alts simplify their structure and convert to C-corporations from partnerships? What would this mean for valuations? We think the Tax Cuts and Jobs Act could accelerate cost-benefit analyses and decision- making by management...

…ng Takeaways (10 Nov 2016) Alternative Asset Managers: Who@Got Swimsuits? (19 May 2016) Asset Managers: Convergence of Alts/Traditionals Multiple: Put This Chart on Your Wall (21 Jul 2019 US Asset Managers: Benchmark Inclusion of Alts: What If...? (22 Jan 2015) US Asset Manage...

and we could also see Alts performance fee earnings

and we expect average Alts growth over the next to years to be 10x that

we have heard partnership alts increasingly use HLNE as a peer

open ended funds). Those alts with larger

…Group CG OW $33 343 174 s KKR & Co KKR EW $24 848 153 Oaktree Capital Group (2) OAK ow $45.20 $60 156 100 Mean (Covered Alts), (Market Cap, EV and AuM equals Total) 100.6 1,162 Median (Covered Alts) TD Ameritrade Holding Corp AMTD EW $54.97 $61 11.0 567 31.2 1,119 E*TRADE Financi...

…x 2.3x 3.00 10.9x 2.53 -16% 13.1x 2.1x Source: Thomson Reuters Company Data, Morgan Stanley Research estimates If the Alts converted to C-corps, there would be tax leakage as aresult no pass-through of earnings for carried interest and investment income. We estimate an effecti...

…nstructing Our Implied Carry Valuation: What Is the Market Paying? We deconstruct the various pieces of a SOTP for the alts in order to determine our best guess on how much the market is valuing future performance fees. We then divide that implied value by future performance fee...

…ur upside scenario to illustrate where we think mul- tiples go and where the stocks can trade over the near term if the alts convert. Our upside scenario implies an average share price increase of 13% across the group. e First we fully tax effect the performance fee earnings. U...

…n the potential change in taxes following the election, and whether that means reassessing corporate structures for the alts, with a possible change from PTP to C-corp. Investors bullish on the equity markets Our polling results indicate that investors are generally positive on e...

Morgan Stanley | researcs NORTH AMERICA INSIGHT 2 January 30, 2018 05:01 AM GMT Alternative Asset Managers Can Alts Unlock Value with C-Corp Conversions ° We think APO could unlock the most value by converting to a C-corp with 26% in our upside case vs. -14% in our downside c...