Private Market Valuation

[lennie_88]

Does anyone know of a good source for finding private market multiples? For example many value managers reference asset managers to be worth 1-3% of AUM. Where do they find that data?

[ExpectedValue]

if you don't have access to sell side research reports, you can go back and find a list of asset manager deals, just by searching the newspaper and see what the multiple is yourself.

 

After you get together a list of deals you will have a good feel for the price/multiple paid.

[Packer16]

In the asset management area, you can get a pretty good spread of AUM multiples from the publicly traded firms.  The firm's who have more fixed income are going to trade at lower % of AUM because the fees they charge are less than equity and alternative investment managers.  Some recent transactions include: Neuberger Berman sale to Barclay's and Ashton to AMG. 

 

Packer

[bonechip1]

Often, the proxies and fairness opinions in the public filings associated with M&A transactions have great info on comparable transaction multiples.  Michael Price mentioned this in a talk a few years ago at Columbia.

[SharperDingaan]

 

You might also want to look at roughly when the AUM came on, & what the average price level was at that time. There's usually a declining early redemption fee, & less of a discount the more underwater they are (assets are more 'sticky')

 

SD

[lennie_88]

Great. Thanks for all of the feedback.