Slim Carry On These Wayward Funds...

Research evidence excerpt

Slim Carry On These Wayward Funds...

Financials | Brokers, Banks & Asset Managers

July 13, 2026

Glenn Schorr, CFA Slim Carry On These Wayward Funds...

212-653-9045 “…There’ll be exits when you are done.”

glenn.schorr@evercoreisi.com

Benjamin Rubin, CFA, CPA Cringy lyrical references aside, Kansas’ hit single speaks to one of

646-551-8502 the big questions for the alternative asset managers heading into

Benjamin.Rubin@evercoreisi.com 2Q earnings: Carried Interest. We expect 2Q will be another slow

John Dunn quarter for carry realizations with mgmt. teams pointing to 2H26 and

212-446-9455

2027 for an acceleration in exit activity. This, in turn, is driving an John.Dunn@EvercoreISI.com

even steeper ramp in PRE (performance-related earnings) to meet Matthew Lyons, CFA

212-336-1709 Street estimates, which has net performance fees for the alts

matthew.lyons@evercoreISI.com growing at a 40% CAGR through 2027. And while the alts have

Sam Wardlow underperformed other capital market names to date, we believe

212-653-9019 they’ll have to wait another quarter or two before estimates begin

sam.wardlow@evercoreisi.com increasing and they can lay their weary heads to rest, as several

_ near-term headwinds linger including quiet credit deployment,

sluggish (but improving) insurance sales, and elevated private

credit redemptions. Until they can rise above the noise and

confusion, the alts will have to “carry on”.

Browsing the Clearance Rack. Multiples across the alts remain

cheap, with the group multiple on ‘27 numbers currently at 12x (a

35% discount to their 3-yr avg). For context, traditional asset

managers, whose industry fundamentals remain under pressure,

trade at 10x, leaving their discount to the alts at its narrowest level

in several years.