Slotting Into Our Relative Ranks Post Launch, With An Eye On Index Rebalancing

Research evidence excerpt

Slotting Into Our Relative Ranks Post Launch, With An Eye On Index Rebalancing

TD Cowen

Global Research June 9, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Alternative Asset Managers:

Due to the industry's evolution toward "Gen IV" models, ongoing index inclusion, and still sizeable TAMs, we migrate our

valuation methodology toward P/E multiples and implied PEG ratios vs. former SOTP methodology. To arrive at our P/E

multiple, we leverage our proprietary regression work against '26E long term (LT) net new asset (NNA) annualized organic

growth rate(s), AOGR. We then overlay two analyst adjustments, depending on respective positioning, including retail

and SPX inclusion gross up factors. We then apply this combined P/E multiple against our 2026E earnings (per share)

expectations, including Distributable Earnings (DE), Realized Income (RI) and/or Adjusted Net Income, depending on the

company's disclosure. From here, we also triangulate to '26E PEG ratio – both absolute and relative to the SPX (500).

For selected companies that have provided LT financial guidance, we may also use a blended methodology, including

a sliding weighting between '26E, or the base year and the "out year", which can range from '28E to '30E+ depending on

circumstance(s).

Investment Risks

Key investment risks include: 1) major decline in capital markets; 2) rising/falling interest rates, and attendant yield curve,

reflecting the difference between US Treasury 10 Year Yield and the Federal Funds Rate; 3) widening credit spreads; 4)

delayed LP allocation trends; 5) shifting competitive landscape; and 6) changes in regulatory backdrop. Rising interest

rates tends to slow the sector’s flywheel, notably asset gathering, deployment and monetization cycles, and could elongate