Blackstone And CVC Comparison

 

Blackstone Inc, the global leader in private equity, real assets, private credit looks overvalued when compared to CVC Capital Partners or CVC, one of the leading firms in private equity, private credit which looks undervalued, comparatively, according to Wolfteam Ltd.'s projections and estimates.

Blackstone sports 199.93 billion USD market capitalization, while CVC has 24.24 billion EURs of market capitalization. Blackstone's Price/Earnings ratio is 45.52, while CVC's Price/Earnings ratio is 53.26. Blackstone distributes 2.40 % dividend yield, while CVC does not pay any dividends.

Blackstone's total assets under management are 1.127 trillion USDs, while CVC's assets under management are 193 billion EURs, according to both firms' latest financial reports filings.

On the accounts above Blackstone seems overvalued relative to CVC, while CVC seems undervalued on a relative basis.

Here are Blackstone's capital metrics:

Total Assets Under Management (“AUM”) of $1,127.2 billion
– Fee-Earning AUM of $830.7 billion
– Perpetual Capital AUM of $444.8 billion
▪ Inflows of $57.5 billion in the quarter and $171.5 billion for the year
▪ Deployment of $41.6 billion in the quarter and $133.9 billion for the year
▪ Realizations of $25.9 billion in the quarter and $87.1 billion for the year
 

 

Here are CVC's capital metrics:

We are a scaled and
diversified global leader
in Private Markets with
multiple growth avenues.
Key Highlights
Note: All figures are as at 30 June 2024.
1. Acquisition of CVC DIF closed on 1 July 2024.
2. Includes GP commitment.
3. Includes GP commitment and overflow fund.
4. Source: J.P. Morgan Collaterised Loan Obligations Weekly
Datasheet as at 15 July 2024, data excludes Private Credit/
Middle Market deals and includes re-issues of collateralised loan
obligations (‘CLOs’).
5. Does not include €0.3bn in LP co-investment/sidecar vehicles.
Includes GP commitment.
€175bnExcluding CVC DIF
€193bnIncluding CVC DIF

Here is Blackstone's latest fourth quarter 2024 financial statement:
 

Blackstone | 3
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2024 SEGMENT EARNINGS
Fee Related Earnings per Share is based on end of period DE Shares Outstanding (see page 24, Share Summary). DE per Common Share is based on DE Attributable
to Common Shareholders (see page 23, Shareholder Dividends) and end of period Participating Common Shares outstanding. Full year FRE per Share and DE per
Common Share amounts represent the sum of the last four quarters. See pages 32-33 for the Reconciliation of GAAP to Total Segment Measures.% Change % Change
($ in thousands, except per share data) 4Q'23 4Q'24 vs. 4Q'23 FY'23 FY'24 vs. FY'23
Management and Advisory Fees, Net 1,653,831$ 1,859,291$ 12% 6,663,244$ 7,133,534$ 7%
Fee Related Performance Revenues 168,994 1,399,276 728% 858,527 2,135,945 149%
Fee Related Compensation (470,408) (1,077,477) 129% (2,088,110) (2,739,322) 31%
Other Operating Expenses (310,874) (345,169) 11% (1,084,333) (1,248,092) 15%
Fee Related Earnings 1,041,543$ 1,835,921$ 76% 4,349,328$ 5,282,065$ 21%
Realized Performance Revenues 693,213 865,080 25% 2,061,102 2,287,031 11%
Realized Performance Compensation (287,628) (289,595) 1% (896,017) (951,246) 6%
Realized Principal Investment Income 19,202 25,613 33% 110,932 92,526 (17)%
Net Realizations 424,787 601,098 42% 1,276,017 1,428,311 12%
Total Segment Distributable Earnings 1,466,330$ 2,437,019$ 66% 5,625,345$ 6,710,376$ 19%
Distributable Earnings 1,388,180$ 2,169,493$ 56% 5,060,955$ 5,966,742$ 18%
Additional Metrics:
Net Income Per Share of Common Stock, Basic 0.20$ 0.92$ 360% 1.84$ 3.62$ 97%
FRE per Share 0.86$ 1.50$ 74% 3.58$ 4.32$ 21%
DE per Common Share 1.11$ 1.69$ 52% 3.95$ 4.64$ 17%
Total Segment Revenues 2,535,240$ 4,149,260$ 64% 9,693,805$ 11,649,036$ 20%
Total Assets Under Management 1,040,192,447$ 1,127,179,996$ 8% 1,040,192,447$ 1,127,179,996$ 8%
Fee-Earning Assets Under Management 762,607,902$ 830,708,603$ 9% 762,607,902$ 830,708,603$ 9% 

Here are CVC's earnings:

Statutory statement of profit or loss (€ 000) Jun-24 Jun-23
Management fees 443,739 365,713
Carried interest and performance fees 108,725 87,531
Investment income 83,274 49,295
Other operating income 2,491 1,033
Total revenue 638,229 503,572
Advisory fee expense – (210,744)
Personnel expenses (182,493) (27,568)
General and administrative expenses (106,757) (31,561)
Change in valuation of forward liability (209,420) (58,762)
Foreign exchange (losses)/gains (191) 2,169
Expenses with respect to investment vehicles (1,609) (137)
EBITDA 137,759 176,969
Depreciation and amortisation (33,580) (12,923)
Total operating profit 104,179 164,046
Finance income 4,400 5,971
Finance expense (22,495) (13,688)
Profit before income tax 86,084 156,329
Income tax charge (6,049) (8,545)
Profit after income tax 80,035 147,784
Attributable to:
Equity holders of the parent 44,794 136,330
Non-controlling interests 35,241 11,454

Although Blackstone is more profitable than CVC, still Blackstone's looks overvalued compared to CVC. Part of the reason for Blackstone's high market capitalization are its technology investments and leadership in private credit. Although Blackstone might look overvalued on a relative basis, on an absolute value Blackstone is still intrinsically undervalued, according to Wolfteam Ltd.'s projections and estimates. CVC is also intrinsically undervalued.