Jefferies Rates 3 Out Of These 4 Asset Managers As Buys

The firm said its third-quarter estimates for these firms move down about 4 percent on average, with disparity driven by public market exposures and concentration. Sequentially, the firm noted strong activity levels on strong selling triggered by elevated valuations in the private portfolio. The firm also noted higher fund raising demand for most, although product supply and investment opportunities served as inhibiting factors.

Related Link: Apollo's 2016 M&A Frenzy Continues

Raising Estimates For Apollo On Credit Market Health

Analyst Gerald O'Hara raised his third-quarter estimate for Apollo Global to $0.54 from $0.48 on improving credit market health and private portfolio comps. The analyst noted that exits were muted and four deals closed in the quarter. The firm believes the deployment activity will sharpen the sight lines on funds raising for Fund IV.

Lowering 3Q Estimates For Blackstone

Jefferies lowered its third-quarter economic net income per share estimate for Blackstone to $0.51 from $0.64 but maintained its 2017 estimate at $2.80. Public portfolio was flat to down but private positions held better, the firm noted. The firm forecasts third-quarter distributions of $0.28, flat vs. the previous quarter.

Weak Public Market Leads To Estimate Reduction For Carlyle

Premising on mixed-to-down impact of the public market, Jefferies lowered its third-quarter economic net income estimate for Carlyle to $0.30 from $0.41. However, the firm noted strong and broad based activity levels.

Upbeat On KKR

Jefferies raised its third-quarter estimate for KKR to $0.59 from $0.51, reflecting public portfolio marks and a 19+ percentage gains in FDC. The firm sees a 80:20 impact on balance sheet and funds.

At Last Check ...

• Apollo Global was down 0.85 percent at $18.64.
• Blackstone Group was down 1.46 percent at $24.30.
• The Carlyle Group was down 2.32 percent at $15.19.
• KKR was down 0.9 percent at $14.24.

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