Q: Looking to add one PE/Alt manager - can you compare BN to BX and who gets the nod?
5i Research Answer:
BX is larger (by about double and a bit). BN is cheaper on a P/E basis, but this is often not the best metric and earnings can be quite volatile. BN has outperformed a bit this year; they are closer on a one year basis. BX has a much higher yield, but BN has a much better record of beating estimates (8/8 vs 6/8 quarters). BX has indicated it expects 'a much better 2025' whereas BN is going to show better growth this year and about 10% growth in 2025. Both have massive amounts of capital available to deploy, but BN likely has more on a relative size basis. We would consider it a very close contest, and essentially a wash. We might lean to BN as we do know it better and have a very high degree of confidence in it.