Exhibit (c)(5) Preliminary Draft – Not for Reliance; Subject to Change and Further Review Project Atlas – Supplementary Oslo Valuation Materials November 2018Exhibit (c)(5) Preliminary Draft – Not for Reliance; Subject to Change and Further Review Project Atlas – Supplementary Oslo Valuation Materials November 2018
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Research Analyst Outlook PRICE TARGETS & RATINGS RESEARCH ANALYST COMMENTARY 12M Discounted Broker Date Price Target Price Target Rating § “Our 12-mo $45 target price (no change) is derived using a 13.0x multiple on our five year normalized cash EPS. Risks Morgan Stanley 11/14/18 $48.00 $42.96 Overweight include a slowdown in fundraising and flattish FRE (until Opps Xb fees turn on).” – Credit Suisse (10/30/2018) Credit Suisse 10/31/18 $45.00 $40.27 Hold § “Our PT is based on sum-of-parts valuation assuming: fee- related earnings of ~17x, carried interest earnings valuing carry funds & dry powder at 6-yr horizon at 1.8x MOIC & BV multiple of 1x.” Deutsche Bank 10/26/18 $39.00 $34.90 Hold – Deutsche Bank (10/26/2018) § “On the fee-related earnings side, the key driver of growth remains Ops Xb ($9bn distressed fund), and management Goldman Sachs 10/26/18 $44.00 $39.38 Hold doesn’t expect to fully turn on fees until 2H19 amid limited distressed opportunities…We raise our SOTP based 12- month price target to $44 from $42 largely based on higher FRE.” Jefferies 10/01/18 $41.00 $36.69 Hold – Goldman Sachs (10/26/2018) § “Our PT reflects a 16x multiple on the relatively stable base [of] net management fees and a discounted 8x multiple on Low $39.00 $34.90 the more volatile net performance fees we expect in 2018.” – Jefferies (10/01/2018) High $48.00 $42.96 Source: Wall Street research Note: Price targets discounted at assumed 11.7% cost of equity 2Preliminary Draft – Not for Reliance; Subject to Change and Further Review Research Analyst Outlook PRICE TARGETS & RATINGS RESEARCH ANALYST COMMENTARY 12M Discounted Broker Date Price Target Price Target Rating § “Our 12-mo $45 target price (no change) is derived using a 13.0x multiple on our five year normalized cash EPS. Risks Morgan Stanley 11/14/18 $48.00 $42.96 Overweight include a slowdown in fundraising and flattish FRE (until Opps Xb fees turn on).” – Credit Suisse (10/30/2018) Credit Suisse 10/31/18 $45.00 $40.27 Hold § “Our PT is based on sum-of-parts valuation assuming: fee- related earnings of ~17x, carried interest earnings valuing carry funds & dry powder at 6-yr horizon at 1.8x MOIC & BV multiple of 1x.” Deutsche Bank 10/26/18 $39.00 $34.90 Hold – Deutsche Bank (10/26/2018) § “On the fee-related earnings side, the key driver of growth remains Ops Xb ($9bn distressed fund), and management Goldman Sachs 10/26/18 $44.00 $39.38 Hold doesn’t expect to fully turn on fees until 2H19 amid limited distressed opportunities…We raise our SOTP based 12- month price target to $44 from $42 largely based on higher FRE.” Jefferies 10/01/18 $41.00 $36.69 Hold – Goldman Sachs (10/26/2018) § “Our PT reflects a 16x multiple on the relatively stable base [of] net management fees and a discounted 8x multiple on Low $39.00 $34.90 the more volatile net performance fees we expect in 2018.” – Jefferies (10/01/2018) High $48.00 $42.96 Source: Wall Street research Note: Price targets discounted at assumed 11.7% cost of equity 2
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Discounted Cash Flows Analysis Based on Adjusted Research Model ($ in millions, except per share values) Key Assumptions Valuation Summary Implied Value per Share $49.86 Current Price $40.33 WACC for Fee-Related Earnings (FRE) 10.9% Premium to Current 23.6% WACC for Performance Fees 16.4% Valuation Date 12/31/18 Value Attribution: Free Cash Flows 23% 2024E FRE Exit Multiple 17.5x 2024E Performance Fees Exit Multiple 9.0x Terminal Value 77% Invested Capital Multiple of Book Value 1.0x Adjusted Research Model Management Forecast Research Estimates 2019E 2020E 2021E 2022E 2023E Pre-Tax FRE $280 $350 $324 $355 $430 Less: Equity-Based Compensation (70) (73) (75) (72) (72) Tax Rate (ex TRA benefit) 8% 10% 12% 14% 16% Less: Taxes on FRE (17) (28) (30) (40) (57) After-Tax FRE $193 $249 $219 $244 $301 Pre-Tax Performance Fee Earnings $345 $317 $398 $319 $228 Tax Rate (ex TRA benefit) 10% 12% 14% 16% 18% (35) (38) (56) (51) (41) Less: Taxes After-Tax Performance Fees $311 $279 $342 $268 $187 10 10 10 10 11 Plus: D&A Less: CAPEX (5) (6) (6) (7) (8) - - - - - Less: Changes in Net Working Capital Free Cash Flow to Firm $508 $532 $565 $515 $490 Source: Bloomberg, FactSet as of 11/15/2018, Wall Street research Note: CAPEX and changes in net working capital from Wall Street research 3Preliminary Draft – Not for Reliance; Subject to Change and Further Review Discounted Cash Flows Analysis Based on Adjusted Research Model ($ in millions, except per share values) Key Assumptions Valuation Summary Implied Value per Share $49.86 Current Price $40.33 WACC for Fee-Related Earnings (FRE) 10.9% Premium to Current 23.6% WACC for Performance Fees 16.4% Valuation Date 12/31/18 Value Attribution: Free Cash Flows 23% 2024E FRE Exit Multiple 17.5x 2024E Performance Fees Exit Multiple 9.0x Terminal Value 77% Invested Capital Multiple of Book Value 1.0x Adjusted Research Model Management Forecast Research Estimates 2019E 2020E 2021E 2022E 2023E Pre-Tax FRE $280 $350 $324 $355 $430 Less: Equity-Based Compensation (70) (73) (75) (72) (72) Tax Rate (ex TRA benefit) 8% 10% 12% 14% 16% Less: Taxes on FRE (17) (28) (30) (40) (57) After-Tax FRE $193 $249 $219 $244 $301 Pre-Tax Performance Fee Earnings $345 $317 $398 $319 $228 Tax Rate (ex TRA benefit) 10% 12% 14% 16% 18% (35) (38) (56) (51) (41) Less: Taxes After-Tax Performance Fees $311 $279 $342 $268 $187 10 10 10 10 11 Plus: D&A Less: CAPEX (5) (6) (6) (7) (8) - - - - - Less: Changes in Net Working Capital Free Cash Flow to Firm $508 $532 $565 $515 $490 Source: Bloomberg, FactSet as of 11/15/2018, Wall Street research Note: CAPEX and changes in net working capital from Wall Street research 3
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Discounted Cash Flows Analysis Based on Adjusted Research Model (cont’d) ($ in millions, except per share values) Terminal Value 2019E 2020E 2021E 2022E 2023E Terminal Metrics: 2024E After-tax FRE (after Equity-Based Compensation Expense) $346 2024E After-tax Performance Fees $226 Q3'18 Invested Capital (excl. Dublin) $1,720 Terminal Value (Nominal): from FRE $6,052 from Performance Fees 2,038 from Invested Capital 1,720 Total Terminal Value $9,809 (1) $183 $213 $169 $169 $188 PV of FRE (1) 288 222 234 157 94 PV of Performance Fees PV of Other Cash Flows 4 3 3 3 2 PV of Terminal Value - FRE 3,600 PV of Terminal Value - Performance Fees 952 PV of Terminal Value - Invested Capital 1,720 Implied Enterprise Value $8,206 Plus: Net Cash 267 Less: Preferred Equity (401) Implied Equity Value $8,072 Fully Diluted Shares Outstanding 161.9 Implied Value per Share $49.86 Source: Bloomberg, FactSet as of 11/15/2018, Wall Street research Note: (1) Present value calculated using mid-year convention, except for terminal value 4Preliminary Draft – Not for Reliance; Subject to Change and Further Review Discounted Cash Flows Analysis Based on Adjusted Research Model (cont’d) ($ in millions, except per share values) Terminal Value 2019E 2020E 2021E 2022E 2023E Terminal Metrics: 2024E After-tax FRE (after Equity-Based Compensation Expense) $346 2024E After-tax Performance Fees $226 Q3'18 Invested Capital (excl. Dublin) $1,720 Terminal Value (Nominal): from FRE $6,052 from Performance Fees 2,038 from Invested Capital 1,720 Total Terminal Value $9,809 (1) $183 $213 $169 $169 $188 PV of FRE (1) 288 222 234 157 94 PV of Performance Fees PV of Other Cash Flows 4 3 3 3 2 PV of Terminal Value - FRE 3,600 PV of Terminal Value - Performance Fees 952 PV of Terminal Value - Invested Capital 1,720 Implied Enterprise Value $8,206 Plus: Net Cash 267 Less: Preferred Equity (401) Implied Equity Value $8,072 Fully Diluted Shares Outstanding 161.9 Implied Value per Share $49.86 Source: Bloomberg, FactSet as of 11/15/2018, Wall Street research Note: (1) Present value calculated using mid-year convention, except for terminal value 4
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Discounted Cash Flows Analysis Based on Adjusted Research Model (cont’d) Sensitivity Analysis FRE WACC 2024E FRE Exit Multiple 9.0% 10.0% 10.9% 12.0% 13.0% 12.5x 15.0x 17.5x 20.0x 22.5x 14.5% 52.90 51.68 50.59 49.42 48.38 2024E 7.0x 42.20 45.38 48.55 51.73 54.91 Perf. 15.5% 52.51 51.29 50.20 49.03 47.99 Perf. 8.0x 42.85 $46.03 49.21 52.38 55.56 Fees 16.4% 52.17 50.95 $49.86 48.69 47.65 Fees 9.0x 43.51 46.68 $49.86 53.04 56.21 WACC 17.5% 51.79 50.57 49.48 48.31 47.27 Exit 10.0x 44.16 47.34 50.51 $53.69 56.87 51.46 50.24 49.14 47.98 46.94 44.81 47.99 51.17 54.34 57.52 18.5% Multiple 11.0x Source: Bloomberg, FactSet as of 11/15/2018, Wall Street research 5Preliminary Draft – Not for Reliance; Subject to Change and Further Review Discounted Cash Flows Analysis Based on Adjusted Research Model (cont’d) Sensitivity Analysis FRE WACC 2024E FRE Exit Multiple 9.0% 10.0% 10.9% 12.0% 13.0% 12.5x 15.0x 17.5x 20.0x 22.5x 14.5% 52.90 51.68 50.59 49.42 48.38 2024E 7.0x 42.20 45.38 48.55 51.73 54.91 Perf. 15.5% 52.51 51.29 50.20 49.03 47.99 Perf. 8.0x 42.85 $46.03 49.21 52.38 55.56 Fees 16.4% 52.17 50.95 $49.86 48.69 47.65 Fees 9.0x 43.51 46.68 $49.86 53.04 56.21 WACC 17.5% 51.79 50.57 49.48 48.31 47.27 Exit 10.0x 44.16 47.34 50.51 $53.69 56.87 51.46 50.24 49.14 47.98 46.94 44.81 47.99 51.17 54.34 57.52 18.5% Multiple 11.0x Source: Bloomberg, FactSet as of 11/15/2018, Wall Street research 5
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premia Analysis Summary § Includes acquisitions of public North American targets since 01/01/2013 (57 total transactions) – Equity deal value between $5B and $10B – Cash consideration greater than 10% of total – Excludes acquisitions of minority stakes PREMIA BY TIME HORIZON PREMIA BY QUARTILE – 1-WK PRIOR TO ANNOUNCE. Overall 43.3% 61.9% Mean 35.7% Median 32.3% th 75 Percentile 38.0% 53.3% 37.2% 34.6% 34.5% 29.9% 28.8% 23.9% 23.6% 17.8% 17.7% 20.3% th 25 Percentile 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 1 - Day 1 - Week 1 - Month Mean Median Time Period Prior to Announcement Source: Dealogic as of 11/15/2018 Note: Excludes premia affected by market rumors prior to deal announcement 6Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premia Analysis Summary § Includes acquisitions of public North American targets since 01/01/2013 (57 total transactions) – Equity deal value between $5B and $10B – Cash consideration greater than 10% of total – Excludes acquisitions of minority stakes PREMIA BY TIME HORIZON PREMIA BY QUARTILE – 1-WK PRIOR TO ANNOUNCE. Overall 43.3% 61.9% Mean 35.7% Median 32.3% th 75 Percentile 38.0% 53.3% 37.2% 34.6% 34.5% 29.9% 28.8% 23.9% 23.6% 17.8% 17.7% 20.3% th 25 Percentile 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 1 - Day 1 - Week 1 - Month Mean Median Time Period Prior to Announcement Source: Dealogic as of 11/15/2018 Note: Excludes premia affected by market rumors prior to deal announcement 6
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Transaction Case Study SoftBank Group / Fortress Investment Group OVERVIEW EMBEDDED VALUE § On 02/14/2017, SoftBank Group announced an agreement to acquire § Significant embedded value, with net cash, investments, and undistributed Fortress Investment Group, the global investment firm with ~$70B in AUM incentive income account for ~70% of the unaffected market capitalization (1) as of Sep-2016 for $3.4B (as of 02/13/2017) – On 07/12/2017, Class A and B shareholders voted in favor of the proposal § SoftBank will pay $8.08 per share in cash $965 $3,265 – This represents a 39% premium over its February 13 closing price of $5.83 As of 02/13/2017 § Fortress senior executives Pete Briger, Wes Edens and Randy Nardone $2,300 have agreed to five-year employment agreements and have committed to invest half of the $1.4B received (after-tax) in go-forward vehicles – 50% reinvestment of proceeds will be released in years 4 (80%) and 5 ($1,269) (20%) $1,399 – Forfeitable for termination for cause / resignation without good reason ($597) – Founders’ compensation arrangements to be consistent with those prior to transaction § Fortress to operate within SoftBank as an independent business headquartered in New York Unaffected Control Offer Value Cash & Undistributed Implied Market Cap Premium Investments Incentive Franchise TAX RECEIVABLE AGREEMENT WAIVER (39%) Income Value § In connection with the transaction, Fortress entered into a TRA waiver IMPLIED TRANSACTION MULTIPLES agreement with its Principals – Principals waived their rights to receive TRA arising out of this DE Per Implied Transaction and any transactions occurring after 02/14/2017 Year Share Multiple – TRA attributable to pre-transaction exchanges not waived but agreed not to exceed in the aggregate: 2016A $0.73 11.1x § $52.9M for Pete Briger 2017E 0.73 11.1x § $58.7M for Wes Edens 2018E 0.73 11.1x § $42.6M for Randal Nardone 2019E 0.77 10.5x Source: SNL Financial, Bloomberg, Company filings Notes: (1) Based on the offer value of $3,265 and debt of $183 (2) Based on 2016A D/E of $362M 7Preliminary Draft – Not for Reliance; Subject to Change and Further Review Transaction Case Study SoftBank Group / Fortress Investment Group OVERVIEW EMBEDDED VALUE § On 02/14/2017, SoftBank Group announced an agreement to acquire § Significant embedded value, with net cash, investments, and undistributed Fortress Investment Group, the global investment firm with ~$70B in AUM incentive income account for ~70% of the unaffected market capitalization (1) as of Sep-2016 for $3.4B (as of 02/13/2017) – On 07/12/2017, Class A and B shareholders voted in favor of the proposal § SoftBank will pay $8.08 per share in cash $965 $3,265 – This represents a 39% premium over its February 13 closing price of $5.83 As of 02/13/2017 § Fortress senior executives Pete Briger, Wes Edens and Randy Nardone $2,300 have agreed to five-year employment agreements and have committed to invest half of the $1.4B received (after-tax) in go-forward vehicles – 50% reinvestment of proceeds will be released in years 4 (80%) and 5 ($1,269) (20%) $1,399 – Forfeitable for termination for cause / resignation without good reason ($597) – Founders’ compensation arrangements to be consistent with those prior to transaction § Fortress to operate within SoftBank as an independent business headquartered in New York Unaffected Control Offer Value Cash & Undistributed Implied Market Cap Premium Investments Incentive Franchise TAX RECEIVABLE AGREEMENT WAIVER (39%) Income Value § In connection with the transaction, Fortress entered into a TRA waiver IMPLIED TRANSACTION MULTIPLES agreement with its Principals – Principals waived their rights to receive TRA arising out of this DE Per Implied Transaction and any transactions occurring after 02/14/2017 Year Share Multiple – TRA attributable to pre-transaction exchanges not waived but agreed not to exceed in the aggregate: 2016A $0.73 11.1x § $52.9M for Pete Briger 2017E 0.73 11.1x § $58.7M for Wes Edens 2018E 0.73 11.1x § $42.6M for Randal Nardone 2019E 0.77 10.5x Source: SNL Financial, Bloomberg, Company filings Notes: (1) Based on the offer value of $3,265 and debt of $183 (2) Based on 2016A D/E of $362M 7
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Transaction Case Study Man Group / GLG OVERVIEW TRANSACTION SUMMARY Principals Public Total § On 05/17/2010, Man Group (Man) and GLG Partners (GLG) agreed to combine the two groups with Man acquiring GLG for an equity value of (2) Offer Price (per share) $3.50 $4.50 $4.08 ~$1.6B in a cash and stock deal Premium to last closing ($2.91) 20.3% 54.6% 40.2% § Total GLG’s AUM: $23.7B (Mar-2010) Consideration Type Stock Cash Shares (M) § Transaction Rationale: Combining two established investment Held by Principals 150 - 150 management businesses with complementary investment strategies and Held by Public - 160 160 geography of franchises and investors; and the integration of sales, Convertible Bond - 67 67 structuring, and operations Unvested, Unissued Shares 14 - 14 § Expected cost run-rate synergies of $50M per year, $25 million achieved Total Number of Shares (M) 163 227 390 in first year (3) Offer Value ($M) $572 $1,021 $1,600 – Run-rate synergies represent 6.8% of 2009A target operating expenses Net Debt ($M) 109 – Expected to be earnings accretive in FY 2012 and earnings neutral in Enterprise Value ($M) $1,708 FY 2011 Implied Multiples § The transaction was completed on 10/14/2010 P / E (Mar-11) 20.4x P / E (Mar-11) inc. synergies 16.2x STRUCTURE & KEY TERMS P / E (Mar-12) 15.0x P / E (Mar-12) inc. synergies 10.9x § The acquisition was structured as a combination of a cash offer of MAN & GLG STOCK PRICES LEADING UP TO DEAL ~$1.0B to the GLG public stockholders and a share offer of ~$0.6B to (1) the GLG Principals GLG Public Share Price £5.00 5.00 $ Last Closing (05/14/2010) $2.91 – Implied premium of 54.6% and 20.3% to the unaffected share price, 4.50 4.50 Offer Price $4.50 respectively Premium 54.6% 4.00 4.00 § Each of the GLG Principals (except for the two limited partnerships) to 3.50 3.50 enter into lockup agreements in respect of their New Man Shares for 3 3.00 3.00 years after closing 2.50 2.50 § GLG’s three principals to forfeit a formula-based percentage of their 2.00 2.00 ownership interests in GLG if one of them were to leave GLG during 5 years after closing 1.50 1.50 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Man (LHS) GLG (RHS) Source: Company filings, Wall Street research, FactSet Notes: (1) Noam Gottesman, Pierre Lagrange, and Emmanuel Roman, together with their related trusts and affiliated entities, and two LPs (2) Blended share price (3) Includes $7M payment to warrant holders 8Preliminary Draft – Not for Reliance; Subject to Change and Further Review Transaction Case Study Man Group / GLG OVERVIEW TRANSACTION SUMMARY Principals Public Total § On 05/17/2010, Man Group (Man) and GLG Partners (GLG) agreed to combine the two groups with Man acquiring GLG for an equity value of (2) Offer Price (per share) $3.50 $4.50 $4.08 ~$1.6B in a cash and stock deal Premium to last closing ($2.91) 20.3% 54.6% 40.2% § Total GLG’s AUM: $23.7B (Mar-2010) Consideration Type Stock Cash Shares (M) § Transaction Rationale: Combining two established investment Held by Principals 150 - 150 management businesses with complementary investment strategies and Held by Public - 160 160 geography of franchises and investors; and the integration of sales, Convertible Bond - 67 67 structuring, and operations Unvested, Unissued Shares 14 - 14 § Expected cost run-rate synergies of $50M per year, $25 million achieved Total Number of Shares (M) 163 227 390 in first year (3) Offer Value ($M) $572 $1,021 $1,600 – Run-rate synergies represent 6.8% of 2009A target operating expenses Net Debt ($M) 109 – Expected to be earnings accretive in FY 2012 and earnings neutral in Enterprise Value ($M) $1,708 FY 2011 Implied Multiples § The transaction was completed on 10/14/2010 P / E (Mar-11) 20.4x P / E (Mar-11) inc. synergies 16.2x STRUCTURE & KEY TERMS P / E (Mar-12) 15.0x P / E (Mar-12) inc. synergies 10.9x § The acquisition was structured as a combination of a cash offer of MAN & GLG STOCK PRICES LEADING UP TO DEAL ~$1.0B to the GLG public stockholders and a share offer of ~$0.6B to (1) the GLG Principals GLG Public Share Price £5.00 5.00 $ Last Closing (05/14/2010) $2.91 – Implied premium of 54.6% and 20.3% to the unaffected share price, 4.50 4.50 Offer Price $4.50 respectively Premium 54.6% 4.00 4.00 § Each of the GLG Principals (except for the two limited partnerships) to 3.50 3.50 enter into lockup agreements in respect of their New Man Shares for 3 3.00 3.00 years after closing 2.50 2.50 § GLG’s three principals to forfeit a formula-based percentage of their 2.00 2.00 ownership interests in GLG if one of them were to leave GLG during 5 years after closing 1.50 1.50 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Man (LHS) GLG (RHS) Source: Company filings, Wall Street research, FactSet Notes: (1) Noam Gottesman, Pierre Lagrange, and Emmanuel Roman, together with their related trusts and affiliated entities, and two LPs (2) Blended share price (3) Includes $7M payment to warrant holders 8
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Transaction Case Study Ares / Kayne Anderson OVERVIEW TRANSACTION SUMMARY § On 07/24/2015, Ares Management announced a $2.55B merger with Sources Uses Kayne Anderson Advisors Existing Cash $30 Purchase Price $2,550 – Kayne had $26B in AUM across 90 funds with a primary focus on MLP New Debt Incurred 750 Expenses 30 – Ares Kayne to have combined AUM of $113B New Equity Issued 1,800 § Transaction rationale for Ares: – Add a market-leading Energy platform Total $2,580 Total Uses $2,580 – Solidify Real Estate expertise Implied Multiples Ownership – Enhance Direct Lending and PE platforms Kayne Implied Post § Majority of consideration to Kayne to be paid in Ares equity – Ares and Kayne employees expected to own 50% and 30% of the Metric Multiple 03-31-15 Merger combined company, respectively 2014A FRE $179 14.4x Ares Employees 72.5% 50.2% § Transaction expected to double Ares’ FRE and DE 2014A ENI 185 13.9x Kayne Employees - 30.8% – FRE margin uplift of 7% – 10% 2014A AT ENI 133 19.4x ADIA 16.2% 11.2% – After-tax ENI accretion of 5.4% and 14.1% based on FY2014 and Q1’15 figures, respectively 2014A DE 198 13.0x Alleghany 5.9% 4.1% Public 5.4% 3.8% STRUCTURE & KEY TERMS FY2014 Q1-'15 § Ares to issue 95M units as part of consideration, increasing share count AT ENI Accretion 5.4% 14.1% by 44% – 6-year phased lock-up with releases of up to 20% starting in May 2016 MERGER TERMINATION through 2021 § Substantially all senior investment professionals are expected to remain § On 10/27/2015, the merger was terminated due to disagreement over at Ares Kayne business combination in response to market conditions in the energy sector – Ares’ Tony Ressler and Kayne’s Ric Kayne to be named Co-Chairmen – Kayne’s Bob Sinnott and Kevin McCarthy to join the Ares Kayne – Kayne AUM decreased by 16% in three months since the Board announcement – Ares’ Tony Ressler, Michael Arougheti and Michael McFerran will § Ares to pay $30M to cover Kayne’s deal expenses and redeem $325M of continue their respective roles as CEO, President and CFO of Ares bonds issued for acquisition at 101% of par Kayne § Ares to invest $150M in various Kayne funds (1) § No balance sheet investments / liabilities acquired – 50/50 split between Ares' balance sheet and principals Source: Company filings, Wall Street research, FactSet Note: (1) Unfunded commitments to certain existing funds and certain working capital liabilities to be acquired 9Preliminary Draft – Not for Reliance; Subject to Change and Further Review Transaction Case Study Ares / Kayne Anderson OVERVIEW TRANSACTION SUMMARY § On 07/24/2015, Ares Management announced a $2.55B merger with Sources Uses Kayne Anderson Advisors Existing Cash $30 Purchase Price $2,550 – Kayne had $26B in AUM across 90 funds with a primary focus on MLP New Debt Incurred 750 Expenses 30 – Ares Kayne to have combined AUM of $113B New Equity Issued 1,800 § Transaction rationale for Ares: – Add a market-leading Energy platform Total $2,580 Total Uses $2,580 – Solidify Real Estate expertise Implied Multiples Ownership – Enhance Direct Lending and PE platforms Kayne Implied Post § Majority of consideration to Kayne to be paid in Ares equity – Ares and Kayne employees expected to own 50% and 30% of the Metric Multiple 03-31-15 Merger combined company, respectively 2014A FRE $179 14.4x Ares Employees 72.5% 50.2% § Transaction expected to double Ares’ FRE and DE 2014A ENI 185 13.9x Kayne Employees - 30.8% – FRE margin uplift of 7% – 10% 2014A AT ENI 133 19.4x ADIA 16.2% 11.2% – After-tax ENI accretion of 5.4% and 14.1% based on FY2014 and Q1’15 figures, respectively 2014A DE 198 13.0x Alleghany 5.9% 4.1% Public 5.4% 3.8% STRUCTURE & KEY TERMS FY2014 Q1-'15 § Ares to issue 95M units as part of consideration, increasing share count AT ENI Accretion 5.4% 14.1% by 44% – 6-year phased lock-up with releases of up to 20% starting in May 2016 MERGER TERMINATION through 2021 § Substantially all senior investment professionals are expected to remain § On 10/27/2015, the merger was terminated due to disagreement over at Ares Kayne business combination in response to market conditions in the energy sector – Ares’ Tony Ressler and Kayne’s Ric Kayne to be named Co-Chairmen – Kayne’s Bob Sinnott and Kevin McCarthy to join the Ares Kayne – Kayne AUM decreased by 16% in three months since the Board announcement – Ares’ Tony Ressler, Michael Arougheti and Michael McFerran will § Ares to pay $30M to cover Kayne’s deal expenses and redeem $325M of continue their respective roles as CEO, President and CFO of Ares bonds issued for acquisition at 101% of par Kayne § Ares to invest $150M in various Kayne funds (1) § No balance sheet investments / liabilities acquired – 50/50 split between Ares' balance sheet and principals Source: Company filings, Wall Street research, FactSet Note: (1) Unfunded commitments to certain existing funds and certain working capital liabilities to be acquired 9
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premium Benchmarks § Includes acquisitions of public North American targets since 01/01/2013 (57 total transactions) – Equity deal value between $5B and $10B – Cash consideration greater than 10% of total – Excludes acquisitions of minority stakes Premium to Market Price Pre-Annc. Announcement Equity Deal % Stake % Cash Date Target Acquiror Value ($M) Acquired Consideration 1 Day 1 Week 1 Month 11/8/2018 ARRIS International CommScope $5,726 100.0% 100.0% NM NM 28.1% 9/10/2018 Integrated Device Technology Renesas Electronics 6,760 100.0% 100.0% NM NM 36.9% 8/8/2018 Dun & Bradstreet CC Capital 5,387 100.0% 100.0% 15.2% 16.2% 14.3% 6/11/2018 Envision Healthcare KKR 5,715 100.0% 100.0% 5.4% 8.0% 8.7% 5/7/2018 athenahealth Veritas Capital Management 5,482 100.0% 100.0% 26.9% 30.6% 15.3% 4/9/2018 AveXis Novartis 8,795 100.0% 100.0% 88.1% 83.3% 59.2% 3/26/2018 USG Knauf Gips 6,136 100.0% 100.0% 25.3% 25.0% 22.0% 3/20/2018 MuleSoft Salesforce.com 7,013 100.0% 80.4% 35.9% 34.3% 43.0% 2/23/2018 Blue Buffalo Pet Products General Mills 7,943 100.0% 100.0% 17.2% 14.0% 20.4% 2/12/2018 CSRA General Dynamics 6,877 100.0% 100.0% 32.2% 31.6% 27.0% 1/22/2018 Juno Therapeutics Celgene 9,900 90.2% 100.0% NM 78.5% 89.1% 1/22/2018 Validus Holdings AIG 5,713 100.0% 100.0% 45.5% 45.9% 45.0% 1/11/2018 DST Systems SS&C Technologies 5,114 100.0% 100.0% NM 31.7% 37.2% 11/20/2017 Cavium Marvell Technology 6,389 100.0% 45.9% NM NM 22.1% 9/18/2017 Orbital ATK Northrop Grumman 8,031 100.0% 100.0% 22.2% 23.9% 28.0% 6/19/2017 Rice Energy EQT 7,588 100.0% 17.3% 35.5% 30.2% 24.0% 5/15/2017 Patheon NV Thermo Fisher Scientific 5,216 100.0% 100.0% 34.6% 32.2% 35.8% Source: Dealogic as of 11/15/2018 Note: Excludes premiums affected by market rumors prior to deal announcement 10Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premium Benchmarks § Includes acquisitions of public North American targets since 01/01/2013 (57 total transactions) – Equity deal value between $5B and $10B – Cash consideration greater than 10% of total – Excludes acquisitions of minority stakes Premium to Market Price Pre-Annc. Announcement Equity Deal % Stake % Cash Date Target Acquiror Value ($M) Acquired Consideration 1 Day 1 Week 1 Month 11/8/2018 ARRIS International CommScope $5,726 100.0% 100.0% NM NM 28.1% 9/10/2018 Integrated Device Technology Renesas Electronics 6,760 100.0% 100.0% NM NM 36.9% 8/8/2018 Dun & Bradstreet CC Capital 5,387 100.0% 100.0% 15.2% 16.2% 14.3% 6/11/2018 Envision Healthcare KKR 5,715 100.0% 100.0% 5.4% 8.0% 8.7% 5/7/2018 athenahealth Veritas Capital Management 5,482 100.0% 100.0% 26.9% 30.6% 15.3% 4/9/2018 AveXis Novartis 8,795 100.0% 100.0% 88.1% 83.3% 59.2% 3/26/2018 USG Knauf Gips 6,136 100.0% 100.0% 25.3% 25.0% 22.0% 3/20/2018 MuleSoft Salesforce.com 7,013 100.0% 80.4% 35.9% 34.3% 43.0% 2/23/2018 Blue Buffalo Pet Products General Mills 7,943 100.0% 100.0% 17.2% 14.0% 20.4% 2/12/2018 CSRA General Dynamics 6,877 100.0% 100.0% 32.2% 31.6% 27.0% 1/22/2018 Juno Therapeutics Celgene 9,900 90.2% 100.0% NM 78.5% 89.1% 1/22/2018 Validus Holdings AIG 5,713 100.0% 100.0% 45.5% 45.9% 45.0% 1/11/2018 DST Systems SS&C Technologies 5,114 100.0% 100.0% NM 31.7% 37.2% 11/20/2017 Cavium Marvell Technology 6,389 100.0% 45.9% NM NM 22.1% 9/18/2017 Orbital ATK Northrop Grumman 8,031 100.0% 100.0% 22.2% 23.9% 28.0% 6/19/2017 Rice Energy EQT 7,588 100.0% 17.3% 35.5% 30.2% 24.0% 5/15/2017 Patheon NV Thermo Fisher Scientific 5,216 100.0% 100.0% 34.6% 32.2% 35.8% Source: Dealogic as of 11/15/2018 Note: Excludes premiums affected by market rumors prior to deal announcement 10
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premium Benchmarks (cont’d) Premium to Market Price Pre-Annc. Announcement Equity Deal % Stake % Cash Date Target Acquiror Value ($M) Acquired Consideration 1 Day 1 Week 1 Month 4/3/2017 Panera Bread JAB Holding $7,168 100.0% 100.0% 20.3% 24.4% 37.5% 1/9/2017 VCA Mars 7,682 100.0% 100.0% 31.4% 35.5% 43.8% 1/9/2017 Ariad Pharmaceuticals Takeda Pharmaceutical 5,471 100.0% 100.0% 74.7% 92.9% 89.3% 11/14/2016 Harman International Samsung Electronics 8,040 100.0% 100.0% 27.8% 32.6% 39.6% 11/2/2016 Brocade Communications Systems Broadcom 5,539 100.0% 100.0% NM 44.9% 34.2% 10/23/2016 BE Aerospace Rockwell Collins 6,529 100.0% 53.2% 22.5% 22.0% 24.0% 10/4/2016 Endurance Specialty Holdings Sompo Holdings 6,285 100.0% 100.0% 43.2% 41.7% 40.2% 7/28/2016 NetSuite Oracle 9,464 100.0% 100.0% 19.0% 33.1% 57.9% 5/16/2016 Anacor Pharmaceuticals Pfizer 5,205 100.0% 100.0% 55.0% 58.7% 53.4% 3/20/2016 Valspar Sherwin-Williams 9,384 100.0% 100.0% 34.8% 38.1% 46.7% 2/17/2016 Ingram Micro Tianjin Tianhai 6,057 100.0% 100.0% 32.2% 38.8% 43.3% 2/16/2016 ADT Protection One 7,063 100.0% 100.0% NM 53.3% 45.5% 2/1/2016 Alere Abbott Laboratories 5,281 100.0% 86.5% 50.5% 47.5% 43.3% 11/2/2015 Dyax Shire 6,557 100.0% 90.1% 35.5% 33.8% 88.6% 8/24/2015 AGL Resources Southern Co 8,325 100.0% 100.0% 37.9% 32.5% 39.6% 7/29/2015 Cytec Industries Solvay 5,580 100.0% 100.0% 28.9% 28.4% 23.9% 7/13/2015 MarkWest Energy Partners Marathon Petroleum 7,965 100.0% 15.6% 31.6% 35.8% 27.4% 7/2/2015 Health Net Centene 5,839 100.0% 41.6% 20.8% 20.8% 28.3% 6/10/2015 HCC Insurance Tokio Marine 7,497 100.0% 100.0% 37.6% 35.1% 34.8% 5/6/2015 Synageva Biopharma Alexion Pharmaceuticals 9,507 100.0% 47.8% 135.7% 123.7% 143.5% 4/14/2015 PartnerRe Exor 6,410 91.2% 100.0% 9.1% 14.0% 15.0% 1/22/2015 City National Royal Bank of Canada 5,491 100.0% 49.9% 25.8% 27.1% 17.6% 12/8/2014 Cubist Pharmaceuticals Merck 8,419 100.0% 100.0% 37.2% 34.9% 44.9% Source: Dealogic as of 11/15/2018 Note: Excludes premiums affected by market rumors prior to deal announcement 11Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premium Benchmarks (cont’d) Premium to Market Price Pre-Annc. Announcement Equity Deal % Stake % Cash Date Target Acquiror Value ($M) Acquired Consideration 1 Day 1 Week 1 Month 4/3/2017 Panera Bread JAB Holding $7,168 100.0% 100.0% 20.3% 24.4% 37.5% 1/9/2017 VCA Mars 7,682 100.0% 100.0% 31.4% 35.5% 43.8% 1/9/2017 Ariad Pharmaceuticals Takeda Pharmaceutical 5,471 100.0% 100.0% 74.7% 92.9% 89.3% 11/14/2016 Harman International Samsung Electronics 8,040 100.0% 100.0% 27.8% 32.6% 39.6% 11/2/2016 Brocade Communications Systems Broadcom 5,539 100.0% 100.0% NM 44.9% 34.2% 10/23/2016 BE Aerospace Rockwell Collins 6,529 100.0% 53.2% 22.5% 22.0% 24.0% 10/4/2016 Endurance Specialty Holdings Sompo Holdings 6,285 100.0% 100.0% 43.2% 41.7% 40.2% 7/28/2016 NetSuite Oracle 9,464 100.0% 100.0% 19.0% 33.1% 57.9% 5/16/2016 Anacor Pharmaceuticals Pfizer 5,205 100.0% 100.0% 55.0% 58.7% 53.4% 3/20/2016 Valspar Sherwin-Williams 9,384 100.0% 100.0% 34.8% 38.1% 46.7% 2/17/2016 Ingram Micro Tianjin Tianhai 6,057 100.0% 100.0% 32.2% 38.8% 43.3% 2/16/2016 ADT Protection One 7,063 100.0% 100.0% NM 53.3% 45.5% 2/1/2016 Alere Abbott Laboratories 5,281 100.0% 86.5% 50.5% 47.5% 43.3% 11/2/2015 Dyax Shire 6,557 100.0% 90.1% 35.5% 33.8% 88.6% 8/24/2015 AGL Resources Southern Co 8,325 100.0% 100.0% 37.9% 32.5% 39.6% 7/29/2015 Cytec Industries Solvay 5,580 100.0% 100.0% 28.9% 28.4% 23.9% 7/13/2015 MarkWest Energy Partners Marathon Petroleum 7,965 100.0% 15.6% 31.6% 35.8% 27.4% 7/2/2015 Health Net Centene 5,839 100.0% 41.6% 20.8% 20.8% 28.3% 6/10/2015 HCC Insurance Tokio Marine 7,497 100.0% 100.0% 37.6% 35.1% 34.8% 5/6/2015 Synageva Biopharma Alexion Pharmaceuticals 9,507 100.0% 47.8% 135.7% 123.7% 143.5% 4/14/2015 PartnerRe Exor 6,410 91.2% 100.0% 9.1% 14.0% 15.0% 1/22/2015 City National Royal Bank of Canada 5,491 100.0% 49.9% 25.8% 27.1% 17.6% 12/8/2014 Cubist Pharmaceuticals Merck 8,419 100.0% 100.0% 37.2% 34.9% 44.9% Source: Dealogic as of 11/15/2018 Note: Excludes premiums affected by market rumors prior to deal announcement 11
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premium Benchmarks (cont’d) Premium to Market Price Pre-Annc. Announcement Equity Deal % Stake % Cash Date Target Acquiror Value ($M) Acquired Consideration 1 Day 1 Week 1 Month 11/3/2014 Covance Laboratory Corp of America $6,422 100.0% 70.7% 31.6% 29.9% 29.9% 9/29/2014 Athlon Energy EnCana 5,927 100.0% 100.0% 25.2% 32.1% 25.7% 9/21/2014 Dresser-Rand Group Siemens 6,687 100.0% 100.0% NM 22.0% 21.4% 9/18/2014 Concur Technologies SAP 8,593 100.0% 100.0% NM NM 29.0% 7/28/2014 Family Dollar Stores Dollar Tree 9,195 100.0% 75.0% 22.8% 22.6% 11.5% 7/15/2014 Rockwood Holdings Albemarle 5,867 100.0% 63.9% 13.0% 12.9% 13.9% 6/23/2014 Integrys Energy Group Wisconsin Energy 5,725 100.0% 26.7% 17.3% 21.9% 23.6% 6/23/2014 MICROS Systems Oracle 5,259 100.0% 100.0% NM 17.8% 29.6% 6/16/2014 tw telecom Level 3 Communications 5,922 100.0% 23.3% 12.4% 22.2% 26.5% 6/3/2014 Protective Life Dai-ichi Life Insurance 5,708 100.0% 100.0% NM 34.5% 36.6% 5/29/2014 Hillshire Brands Tyson Foods 7,981 100.0% 100.0% 11.1% 38.0% 41.4% 4/30/2014 Pepco Holdings Exelon 6,872 100.0% 100.0% 19.6% 26.7% 34.6% 4/7/2014 Questcor Pharmaceuticals Mallkrodt 6,041 100.0% 32.1% 26.8% 32.6% 30.4% 3/6/2014 Safeway Albertson's 8,353 100.0% 100.0% NM NM 17.0% 12/16/2013 LSI Avago Technologies 6,603 100.0% 100.0% 41.0% 37.7% 35.6% 9/9/2013 Molex Koch Industries 7,117 100.0% 100.0% 55.9% 56.8% 49.3% 5/29/2013 NV Energy Berkshire Hathaway 5,651 100.0% 100.0% 20.3% 15.5% 10.9% 25th Percentile 20.3% 23.6% 23.9% Median 28.9% 32.3% 34.2% Mean 33.2% 35.7% 36.6% 75th Percentile 37.2% 38.0% 43.3% Source: Dealogic as of 11/15/2018 Note: Excludes premiums affected by market rumors prior to deal announcement 12Preliminary Draft – Not for Reliance; Subject to Change and Further Review Precedent Premium Benchmarks (cont’d) Premium to Market Price Pre-Annc. Announcement Equity Deal % Stake % Cash Date Target Acquiror Value ($M) Acquired Consideration 1 Day 1 Week 1 Month 11/3/2014 Covance Laboratory Corp of America $6,422 100.0% 70.7% 31.6% 29.9% 29.9% 9/29/2014 Athlon Energy EnCana 5,927 100.0% 100.0% 25.2% 32.1% 25.7% 9/21/2014 Dresser-Rand Group Siemens 6,687 100.0% 100.0% NM 22.0% 21.4% 9/18/2014 Concur Technologies SAP 8,593 100.0% 100.0% NM NM 29.0% 7/28/2014 Family Dollar Stores Dollar Tree 9,195 100.0% 75.0% 22.8% 22.6% 11.5% 7/15/2014 Rockwood Holdings Albemarle 5,867 100.0% 63.9% 13.0% 12.9% 13.9% 6/23/2014 Integrys Energy Group Wisconsin Energy 5,725 100.0% 26.7% 17.3% 21.9% 23.6% 6/23/2014 MICROS Systems Oracle 5,259 100.0% 100.0% NM 17.8% 29.6% 6/16/2014 tw telecom Level 3 Communications 5,922 100.0% 23.3% 12.4% 22.2% 26.5% 6/3/2014 Protective Life Dai-ichi Life Insurance 5,708 100.0% 100.0% NM 34.5% 36.6% 5/29/2014 Hillshire Brands Tyson Foods 7,981 100.0% 100.0% 11.1% 38.0% 41.4% 4/30/2014 Pepco Holdings Exelon 6,872 100.0% 100.0% 19.6% 26.7% 34.6% 4/7/2014 Questcor Pharmaceuticals Mallkrodt 6,041 100.0% 32.1% 26.8% 32.6% 30.4% 3/6/2014 Safeway Albertson's 8,353 100.0% 100.0% NM NM 17.0% 12/16/2013 LSI Avago Technologies 6,603 100.0% 100.0% 41.0% 37.7% 35.6% 9/9/2013 Molex Koch Industries 7,117 100.0% 100.0% 55.9% 56.8% 49.3% 5/29/2013 NV Energy Berkshire Hathaway 5,651 100.0% 100.0% 20.3% 15.5% 10.9% 25th Percentile 20.3% 23.6% 23.9% Median 28.9% 32.3% 34.2% Mean 33.2% 35.7% 36.6% 75th Percentile 37.2% 38.0% 43.3% Source: Dealogic as of 11/15/2018 Note: Excludes premiums affected by market rumors prior to deal announcement 12
Preliminary Draft – Not for Reliance; Subject to Change and Further Review Selected Public U.S. Company Trading Statistics Traditional Asset Managers 2019E 2019E Market Enterprise AUM Stock Price EV / Revenue EV / EBITDA Price / EPS Organic Growth EPS EBITDA Dividend Company Cap ($M) Value ($M) ($B) Current LTM ∆ 2019E 2019E 2020E 2019E 2020E LTM NTM Margin Yield LTG Diversified BlackRock $65,386 $64,076 $6,444 $406.88 (13.5%) 4.4x 10.7x 9.9x 14.4x 13.0x 3.0% 4.1% 40.8% 3.1% 10.9% T. Rowe Price 23,950 21,754 1,084 96.06 1.8% 3.9x 8.2x 8.2x 12.6x 12.0x 2.7% 1.9% 47.2% 3.1% 5.1% Franklin 16,345 10,748 717 31.58 (21.9%) 1.8x 5.6x 5.9x 10.9x 10.5x (5.0%) (4.3%) 32.1% 3.2% 3.1% (2) (2) (2) (1) Invesco 9,893 15,395 1,227 20.06 (41.8%) 3.1x 6.8x 6.1x 6.6x 5.8x (0.9%) 0.5% 39.9% 6.2% 14.5% AB 8,042 7,836 550 29.75 18.1% 2.7x 9.3x 8.5x 11.2x 10.4x (0.9%) 1.2% 29.1% 8.4% 7.7% Eaton Vance 5,443 5,500 453 43.06 (16.3%) 3.0x 8.5x NA 11.7x NA 5.7% 4.9% 35.1% 3.3% NA Janus Henderson 4,636 4,228 378 23.34 (36.3%) 1.8x 5.4x 5.2x 8.0x 7.6x (5.5%) (1.9%) 34.4% 6.5% 5.4% Waddell & Reed 1,507 1,331 80 19.24 2.9% 1.2x 5.6x 5.6x 9.6x 9.2x (11.5%) (6.8%) 21.4% 5.2% 4.5% Manning & Napier 141 46 23 1.79 (52.3%) 0.3x 3.4x 3.7x 12.1x 16.6x (17.1%) (14.7%) 9.1% 11.2% (27.2%) Diversified Median (16.3%) 2.7x 6.8x 6.0x 11.2x 10.5x (0.9%) 0.5% 34.4% 5.2% 5.2% Specialists Federated $2,549 $2,764 $437 $25.36 (17.3%) 2.3x 8.2x 8.5x 10.4x 10.7x 0.8% 3.4% 27.5% 4.4% (2.5%) Artisan Partners 2,023 2,014 117 26.21 (27.8%) 2.6x 7.3x 6.9x 9.8x 9.0x (4.3%) (1.7%) 35.9% 10.4% 8.2% Cohen & Steers 1,872 1,678 60 38.49 (12.7%) 4.3x 10.7x 9.8x 15.5x 14.7x 0.4% (3.6%) 40.1% 5.7% 5.4% Pzena 744 780 39 10.25 (3.8%) 4.9x 9.9x 8.8x 12.5x 11.3x 6.2% 1.3% 49.5% 2.8% 10.5% Diamond Hill 646 546 23 173.60 (15.3%) NA NA NA NA NA (2.3%) NA NA NA NA GAMCO 609 604 41 20.95 (25.3%) NA NA NA NA NA (9.8%) NA NA NA NA Westwood 382 333 21 40.26 (37.3%) NA NA NA NA NA (18.4%) NA NA NA NA Specialists Median (17.3%) 3.4x 9.0x 8.7x 11.4x 11.0x (2.3%) (0.2%) 38.0% 5.0% 6.8% Multi-Boutiques Affiliated Managers Group $6,035 $8,132 $830 $113.29 (38.7%) 3.5x 8.0x 7.4x 7.2x 6.3x 0.5% 0.9% 43.1% 1.4% 14.5% Legg Mason 2,506 4,139 755 28.27 (25.5%) 1.4x 6.5x 6.5x 8.4x 7.6x (1.5%) 0.5% 21.3% 5.0% 10.8% BrightSphere Investment Group 1,370 1,603 238 12.80 (18.0%) 1.8x 5.7x 5.6x 6.8x 6.3x (3.6%) (1.8%) 30.8% 3.4% 7.7% (1) Victory Capital 950 1,478 75 11.99 (7.8%) 2.7x 5.4x 3.4x 4.7x 3.2x (1.1%) 0.4% 49.4% - 47.1% Virtus 799 1,100 106 102.78 (8.6%) 2.2x 5.8x 5.3x 7.7x 7.1x 0.4% NA 38.6% 2.3% 9.4% Multi-Boutiques Median (18.0%) 2.2x 5.8x 5.6x 7.2x 6.3x (1.1%) 0.5% 38.6% 2.3% 10.8% ETF Managers WisdomTree $1,252 $1,369 $59 $7.43 (32.0%) 4.6x 14.9x 12.9x 21.2x 18.1x (9.6%) 5.0% 30.8% 1.6% 17.3% Total Median (17.7%) 2.7x 7.3x 6.7x 10.4x 9.8x (1.3%) 0.5% 35.1% 3.4% 8.0% Alternative Asset Managers 2019E Market Enterprise AUM Stock Price EV / Revenue EV / EBITDA P / After-Tax ENI P / DE Organic Growth Dividend Yield Company Cap ($M) Value ($M) ($B) Current LTM ∆ 2019E 2019E 2020E 2019E 2020E 2019E 2020E LTM NTM Blackstone $39,062 $37,784 $457 $32.50 5.1% 4.7x 9.2x 8.9x 9.8x 8.4x 11.0x 10.2x 5.5% 10.5% 7.9% KKR 19,283 20,760 195 22.30 16.0% 5.5x 10.7x 7.5x 7.7x 6.8x 12.3x 11.3x 5.1% 6.0% 2.2% Apollo 11,686 12,352 270 28.26 (2.6%) 4.6x 8.7x 7.2x 9.1x 8.5x 9.6x 8.9x 18.1% NA 9.5% Carlyle 6,665 7,423 212 18.57 (8.7%) 2.2x 5.9x 5.2x 6.4x 6.0x 7.1x 6.6x 7.3% 10.3% 11.1% Oaktree 6,525 6,658 124 40.33 (4.4%) 4.3x 9.4x 8.6x 10.4x 8.9x 11.1x 9.7x (3.6%) 1.7% 7.2% Ares Management 4,878 5,406 125 22.00 17.0% 3.8x 12.2x 9.7x 11.0x 9.2x 14.5x 12.3x NA NA 5.5% Alternatives Median 1.3% 4.5x 9.3x 8.1x 9.5x 8.4x 11.0x 10.0x 5.5% 8.2% 7.6% Source: Company filings, FactSet, SNL Financial as of 11/15/2018 Note: (1) Since IPO or re-listing 13Preliminary Draft – Not for Reliance; Subject to Change and Further Review Selected Public U.S. Company Trading Statistics Traditional Asset Managers 2019E 2019E Market Enterprise AUM Stock Price EV / Revenue EV / EBITDA Price / EPS Organic Growth EPS EBITDA Dividend Company Cap ($M) Value ($M) ($B) Current LTM ∆ 2019E 2019E 2020E 2019E 2020E LTM NTM Margin Yield LTG Diversified BlackRock $65,386 $64,076 $6,444 $406.88 (13.5%) 4.4x 10.7x 9.9x 14.4x 13.0x 3.0% 4.1% 40.8% 3.1% 10.9% T. Rowe Price 23,950 21,754 1,084 96.06 1.8% 3.9x 8.2x 8.2x 12.6x 12.0x 2.7% 1.9% 47.2% 3.1% 5.1% Franklin 16,345 10,748 717 31.58 (21.9%) 1.8x 5.6x 5.9x 10.9x 10.5x (5.0%) (4.3%) 32.1% 3.2% 3.1% (2) (2) (2) (1) Invesco 9,893 15,395 1,227 20.06 (41.8%) 3.1x 6.8x 6.1x 6.6x 5.8x (0.9%) 0.5% 39.9% 6.2% 14.5% AB 8,042 7,836 550 29.75 18.1% 2.7x 9.3x 8.5x 11.2x 10.4x (0.9%) 1.2% 29.1% 8.4% 7.7% Eaton Vance 5,443 5,500 453 43.06 (16.3%) 3.0x 8.5x NA 11.7x NA 5.7% 4.9% 35.1% 3.3% NA Janus Henderson 4,636 4,228 378 23.34 (36.3%) 1.8x 5.4x 5.2x 8.0x 7.6x (5.5%) (1.9%) 34.4% 6.5% 5.4% Waddell & Reed 1,507 1,331 80 19.24 2.9% 1.2x 5.6x 5.6x 9.6x 9.2x (11.5%) (6.8%) 21.4% 5.2% 4.5% Manning & Napier 141 46 23 1.79 (52.3%) 0.3x 3.4x 3.7x 12.1x 16.6x (17.1%) (14.7%) 9.1% 11.2% (27.2%) Diversified Median (16.3%) 2.7x 6.8x 6.0x 11.2x 10.5x (0.9%) 0.5% 34.4% 5.2% 5.2% Specialists Federated $2,549 $2,764 $437 $25.36 (17.3%) 2.3x 8.2x 8.5x 10.4x 10.7x 0.8% 3.4% 27.5% 4.4% (2.5%) Artisan Partners 2,023 2,014 117 26.21 (27.8%) 2.6x 7.3x 6.9x 9.8x 9.0x (4.3%) (1.7%) 35.9% 10.4% 8.2% Cohen & Steers 1,872 1,678 60 38.49 (12.7%) 4.3x 10.7x 9.8x 15.5x 14.7x 0.4% (3.6%) 40.1% 5.7% 5.4% Pzena 744 780 39 10.25 (3.8%) 4.9x 9.9x 8.8x 12.5x 11.3x 6.2% 1.3% 49.5% 2.8% 10.5% Diamond Hill 646 546 23 173.60 (15.3%) NA NA NA NA NA (2.3%) NA NA NA NA GAMCO 609 604 41 20.95 (25.3%) NA NA NA NA NA (9.8%) NA NA NA NA Westwood 382 333 21 40.26 (37.3%) NA NA NA NA NA (18.4%) NA NA NA NA Specialists Median (17.3%) 3.4x 9.0x 8.7x 11.4x 11.0x (2.3%) (0.2%) 38.0% 5.0% 6.8% Multi-Boutiques Affiliated Managers Group $6,035 $8,132 $830 $113.29 (38.7%) 3.5x 8.0x 7.4x 7.2x 6.3x 0.5% 0.9% 43.1% 1.4% 14.5% Legg Mason 2,506 4,139 755 28.27 (25.5%) 1.4x 6.5x 6.5x 8.4x 7.6x (1.5%) 0.5% 21.3% 5.0% 10.8% BrightSphere Investment Group 1,370 1,603 238 12.80 (18.0%) 1.8x 5.7x 5.6x 6.8x 6.3x (3.6%) (1.8%) 30.8% 3.4% 7.7% (1) Victory Capital 950 1,478 75 11.99 (7.8%) 2.7x 5.4x 3.4x 4.7x 3.2x (1.1%) 0.4% 49.4% - 47.1% Virtus 799 1,100 106 102.78 (8.6%) 2.2x 5.8x 5.3x 7.7x 7.1x 0.4% NA 38.6% 2.3% 9.4% Multi-Boutiques Median (18.0%) 2.2x 5.8x 5.6x 7.2x 6.3x (1.1%) 0.5% 38.6% 2.3% 10.8% ETF Managers WisdomTree $1,252 $1,369 $59 $7.43 (32.0%) 4.6x 14.9x 12.9x 21.2x 18.1x (9.6%) 5.0% 30.8% 1.6% 17.3% Total Median (17.7%) 2.7x 7.3x 6.7x 10.4x 9.8x (1.3%) 0.5% 35.1% 3.4% 8.0% Alternative Asset Managers 2019E Market Enterprise AUM Stock Price EV / Revenue EV / EBITDA P / After-Tax ENI P / DE Organic Growth Dividend Yield Company Cap ($M) Value ($M) ($B) Current LTM ∆ 2019E 2019E 2020E 2019E 2020E 2019E 2020E LTM NTM Blackstone $39,062 $37,784 $457 $32.50 5.1% 4.7x 9.2x 8.9x 9.8x 8.4x 11.0x 10.2x 5.5% 10.5% 7.9% KKR 19,283 20,760 195 22.30 16.0% 5.5x 10.7x 7.5x 7.7x 6.8x 12.3x 11.3x 5.1% 6.0% 2.2% Apollo 11,686 12,352 270 28.26 (2.6%) 4.6x 8.7x 7.2x 9.1x 8.5x 9.6x 8.9x 18.1% NA 9.5% Carlyle 6,665 7,423 212 18.57 (8.7%) 2.2x 5.9x 5.2x 6.4x 6.0x 7.1x 6.6x 7.3% 10.3% 11.1% Oaktree 6,525 6,658 124 40.33 (4.4%) 4.3x 9.4x 8.6x 10.4x 8.9x 11.1x 9.7x (3.6%) 1.7% 7.2% Ares Management 4,878 5,406 125 22.00 17.0% 3.8x 12.2x 9.7x 11.0x 9.2x 14.5x 12.3x NA NA 5.5% Alternatives Median 1.3% 4.5x 9.3x 8.1x 9.5x 8.4x 11.0x 10.0x 5.5% 8.2% 7.6% Source: Company filings, FactSet, SNL Financial as of 11/15/2018 Note: (1) Since IPO or re-listing 13
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