US PE firms break records across the board
The five big public PE firms—Apollo Global Management, Ares Management, Blackstone, The Carlyle Group and KKR—had a lucrative 2021. The investors all broke records in metrics including assets under management, fundraising, fee revenue, total profits, deployment and more. Our latest analyst note breaks down the data behind US PE firms’ earnings in Q4 2021.
Key takeaways
- Healthy fund performance bodes well for future growth as a flurry of flagship offerings hits the market. Billions in net accrued performance revenues may be realized as firms exit profitable investments.
- Valuations for publicly traded managers diverged in 2021, with public investors rewarding a high-payout, balance-sheet-light approach. Brookfield Asset Management announced it may spin off its asset manager which could force other balance-sheet-intensive managers to adjust their approaches.
- The year cemented the move away from evenly distributing management fees and carried interest to shareholders as public investors favored the steady flow of fees over the less consistent payout of carry. TPG and KKR restructured their payouts and other firms are expected to follow suit.
Table of contents
| Key takeaways | 1 |
| Introduction | 2 |
| Financials | 2 |
| Assests under management | 5 |
| Looking ahead | 8 |
| Share price performance | 9 |