Let’s dig into the relative performance of TPG (NASDAQ: TPG) and its peers as we unravel the now-completed Q2 asset management earnings season.
Asset management firms oversee investment portfolios for institutions and individuals. The industry benefits from the growing global wealth pool, retirement savings needs, and expansion into alternative investments (private equity, real estate, etc.). However, firms face significant pressure from the shift to lower-cost passive investment products, regulatory requirements for fee transparency, and increasing technology costs to stay competitive in portfolio management and client service.
The 5 asset management stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.3%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.
TPG (NASDAQ: TPG)
Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ: TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies.
TPG reported revenues of $489.4 million, up 5.3% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and revenue estimates.
Unsurprisingly, the stock is down 5.8% since reporting and currently trades at $56.74.
Read why we think that TPG is one of the best asset management stocks, our full report is free.
Best Q2: Blackstone (NYSE: BX)
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE: BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Blackstone reported revenues of $3.10 billion, up 22.9% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with an impressive beat of analysts’ revenue and fee-related earnings estimates.
Blackstone pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.2% since reporting. It currently trades at $164.86.
Is now the time to buy Blackstone? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Ares (NYSE: ARES)
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Ares reported revenues of $1.02 billion, up 16.2% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted a significant miss of analysts’ EPS and management fees estimates.
Ares delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.9% since the results and currently trades at $148.64.
Read our full analysis of Ares’s results here.
Carlyle (NASDAQ: CG)
Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ: CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.
Carlyle reported revenues of $984 million, up 24.7% year on year. This print beat analysts’ expectations by 8%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ fee-related earnings and revenue estimates.
Carlyle achieved the fastest revenue growth among its peers. The stock is up 3% since reporting and currently trades at $61.86.
Read our full, actionable report on Carlyle here, it’s free for active Edge members.
Artisan Partners (NYSE: APAM)
Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE: APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.
Artisan Partners reported revenues of $282.7 million, up 4.4% year on year. This result topped analysts’ expectations by 0.8%. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business.
Artisan Partners had the slowest revenue growth among its peers. The stock is down 5% since reporting and currently trades at $43.56.
Read our full, actionable report on Artisan Partners here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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