BSIG

BrightSphere Investment Group Inc

Finance/Real Estate, Event Driven/Special Sit


Presented:01/21/2022
Price:$21.84
Cap:$1.74B
Current Price:$26.63
Cap:$0.99B

Presented

Date01/21/2022
Price$21.84
Market Cap$1.74B
Ent Value$1.26B
P/E Ratio6.13x
Book Value$13.58
Div Yield0.18%
Shares O/S79.82M
Ave Daily Vol1,686,729
Short Int17.95%

Current

Price$26.63
Market Cap$0.99B
BrightSphere Investment Group, Inc. is a holding company, which engages in the provision of asset management services. It also focuses on the development of new business opportunities in domestic and international markets. The firm operates through the following segments: Quant & Solutions, Alternatives and Liquid Alpha. The Quant & Solutions segment leverages data and technology in a computational, factor-based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets and managed volatility equities, as well as multi-asset products. The Alternatives segment consists of liquid and differentiated liquid investment strategies that include private equity, real estate and real assets, including forestry, as well as a growing suite of liquid alternative capabilities in areas such as long/short, market neutral and absolute return. The Liquid Alpha segment consists of specialized investment strategies with a focus on alpha-generation across market cycles in United States. The company was founded in 1980 and is headquartered in Boston, MA.

Public Companies Mentioned Herein: Ares Management Corp (ARES), Barrow Hanley International Value Fund (BNIYX), Brightsphere Investment Group Inc (BSIG), Pendal Group (PDL AU), Perpetual Ltd (PPT AU)

Highlights

The presenter is long shares of Brightsphere Investment Group Inc (BSIG), an alternative asset manager that has sold 6 of its 7 alternative asset managers between July of 2020 and June of 2021, leaving the company with 75% stake in a $114B quant fund. Given that asset managers typically trade at an EBITDA multiple of at least 8x - 10x, the presenter sees a potential upside case for the $22 stock to reach $34 - $42 a per share. Meanwhile, M&A transactions over the last 5 years have struck in the 8x - 13x EBITDA multiple range, and the company has strong tailwind to sell its majority share of Acadian at a high multiple to any large asset managers that want more exposure in quant.

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Idea Discussion

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