Morgan Stanley | RESEARCH
Contents
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Executive Summary
6 (C-corp Conversion Could Be the Catalyst to Unlock Value and Drive Multiple Expansion
8 Impact to Current Valuations in Upside and Downside Case
10 ARES Conversion Largely Priced In
Why Should Fee-Related Earnings Re-Rate Higher?
Tl 1) Premium to Traditionals Asset Managers 13 2) Publicly Traded Alts Comps 13. 3) Bond Yield Approach
14 What Is the Impact of Higher FRE Multiples ina SOTP approach?
What Is the Appropriate Multiple for Performance Fees?
Deconstructing Our Implied Carry Valuation: What Is the Market Paying?
19 Upside Scenario 20 Downside Scenario
Appendix A: Company Scenario Analysis
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NORTH AMERICA INSIGHT ~~
Apollo Global Management SOTP and Sensitivity Analysis
Ares Management SOTP and Sensitivity Analysis Blackstone SOTP and Sensitivity Analysis
The Carlyle Group Management SOTP and Sensitivity Analysis
KKR & Co. SOTP and Sensitivity Analysis
Oaktree Capital Group SOTP and Sensitivity Analysis
Appendix B: Valuation of Alternative Managers - What@in the Price?
Appendix C: Notable Alt Reports: In Case You Missed Them™%
Brokers & Asset Managers Comps Sheet
Valuation and Risks
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