Darren Sissons KKR & Co. LP KKR-N WEAK BUY Mar 04, 2025

Excellent. They keep delivering over and over.

He's invested heavily in private equity, and those businesses have grown ~15% a year, which is reflected in the stocks. No reason for this to slow down, long runway. Pick your poison, buy one or all of BN, APO, KKR, or BX. Next 5 years should be a minimum of a double.

Rates coming down will help private equity. This will also foster more M&A. Because it owns so many assets, you get diversification in that one name. Good management. Positive on it, if you like that space. He doesn't own any private equity.

Alternative asset management is a hot industry. This type of company provide the financing and has the products to sell to institutional investors and retail investors. Likes the industry as a whole. You can't make a living wage with bonds, and equity valuations are high. We're in a multi-year trend of assets flowing into private equity, especially as interest rates come down. 

His favourite in the space is BN.

Chart shows it's done well. Interest rates coming down will help. Strong markets helps get a good price when they sell assets. Tough aspect is that more of the large institutional investors and pension plans are involved in private equity. More competition means they may overpay for assets. When they get money it's locked in, so they don't face the same liquidity crises that hedge funds do.

It is one of original private equity companies and is still in that space. There are fewer and fewer public companies, 400 to 500 fewer in Canada than in the year 2000. There is less debt funding to the tech sector. There should be growth in the short to medium term.

Loves it and its growth. Looking at it, but not ready to buy. Valuation needs to come down a bit more to meet his margin of safety, especially because it doesn't pay a big dividend (so you're relying on capital appreciation).

Private equity (used to be called leveraged buyouts). An American version of Brookfield is a way to conceptualize it. Manage $640B of private equity. Organic growth bolstered by recent acquisition, which takes them into insurance and annuities. Rapidly growing capital markets business. Secular advantage of private market flows are outpacing public market flows. Yield is 0.6%.

He looks at relative strength, head-to-head battles and who's winning. As money flew out of financials, he sold his position. Big correction at the beginning of February. Picked up support ~$110, similar to the August low. Starting to come back. If it can break out above the trend line ~$125, looks encouraging.