Direct Answer
30 SEC filers are classified under the Standard Industrial Classification code that describes the alternative asset managers industry, and their latest annual reports show $138.5 billion of combined revenue and a median operating margin of 12.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Alternative asset managers run private equity, credit, real estate and infrastructure funds and earn management fees and a share of profits called carried interest. Fundraising, deployment and exits drive earnings. The first numbers to compare across companies here are assets under management and fee-paying share, fee-related earnings and fundraising and deployment.
Key Industry Metrics
- Assets under management and fee-paying share: Total capital managed and the portion that earns management fees. Committed but unfunded money may earn lower or no fees, so the fee-paying share is a better yardstick.
- Fee-related earnings: Management fees minus operating costs, excluding performance income. It is a stable measure of core earnings, and sets a base for valuation.
- Fundraising and deployment: Capital raised and capital invested. Raising shows investor demand, and deployment turns commitments into fee-earning assets.
- Realizations and carried interest: Sales of investments and the share of profits earned as a result. These are lumpy and depend on markets for exits, so they swing from year to year.
- Perpetual capital share: Capital that stays invested for long periods rather than in funds that wind down. It gives steadier fee income and reduces fundraising pressure.
Primary Macro Drivers
- Institutional allocations to private markets: Pension funds, insurers and endowments raising private market targets add committed capital and fee-paying assets, lifting fee-related earnings.
- Interest rates and deal activity: Rates change financing costs and valuations, so they influence deal volume, deployment and the value of holdings behind carried interest.
- Exit markets and valuations: Sales of portfolio holdings through IPOs and buyers return capital and bring carried interest, so open exit markets lift realizations.
- Retail access products: Products for individual investors raise assets and perpetual capital share, giving steadier fee income, though with redemption features.
Major Risks
- Fundraising slowdowns: When investors commit less capital, management fees and deployment slow. Watch fundraising and deployment and fee-paying assets under management.
- Valuation write-downs: Lower marks on holdings reduce accrued carried interest and may slow fundraising. Watch realizations against carrying values and valuation commentary.
- Fee compression: Large investors negotiate lower fees and rivals compete, so the fee on each dollar managed can slip. Watch fee-related earnings against assets.
- Regulatory scrutiny of private markets: Rules on valuation, fees and investor access can add cost and limit products. Watch regulatory disclosures and compliance expense.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Alternative Asset Managers Filers in the SEC Record
30 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6282. Their latest fiscal years end between 2025 and 2026, and together they reported $138.5 billion of revenue. Median revenue growth over the prior year was 7.0%. Median operating margin was 12.1% and median net margin 13.7%. Median total liabilities were 54% of total assets, and 24 of 30 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Apollo Global Management, Inc. | $32.0 billion | 22.7% | n/a | 10.6% | FY 2025 |
| Kkr & Co. Inc. | $19.5 billion | -11.0% | n/a | 12.2% | FY 2025 |
| Ameriprise Financial Inc | $18.9 billion | 5.5% | n/a | 18.8% | FY 2025 |
| Blackstone Inc. | $14.5 billion | 9.2% | n/a | 20.9% | FY 2025 |
| Franklin Templeton Inc | $8.8 billion | 3.5% | 6.9% | 6.0% | FY 2025 |
| Price T Rowe Group Inc | $7.3 billion | 3.1% | 29.9% | 28.5% | FY 2025 |
| Invesco Ltd. | $6.4 billion | 5.1% | -10.9% | -2.7% | FY 2025 |
| Carlyle Group Inc. | $4.8 billion | -11.9% | n/a | 16.9% | FY 2025 |
The 8 largest of 30 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Alternative Asset Managers guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Alternative Asset Managers industry?
Key performance indicators for the Alternative Asset Managers industry include: Assets under management and fee-paying share, Fee-related earnings, Fundraising and deployment, Realizations and carried interest, Perpetual capital share. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Alternative Asset Managers industry?
The Alternative Asset Managers industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Alternative Asset Managers industry?
The primary risks for Alternative Asset Managers companies include: Fundraising slowdowns, Valuation write-downs, Fee compression, Regulatory scrutiny of private markets. Investors should assess each company's exposure to these factors and its track record of navigating them.