28 January 2014 Brokers, Asset Managers & Exchanges Alternative Asset Manager Initiation Figures 18 and 19 compare our estimates vs. Consensus, with Figure 18 shown on an ENI per unit basis, and Figure 19 shown on a distribution per unit basis (comparable to dividend per share forecasts, as Consensus DE forecasts are not readily available with a sizeable population). The Figures show our estimates for ENI are generally below Consensus, while our distribution forecasts are generally above Consensus. This above-Consensus view on distributions forms our more optimistic view on the Alt space - to the extent we are correct, and we think upside surprises in distributable earnings over the coming quarters will be a positive catalyst for valuation improvement. [Figure IS: DB Forecasts for ENI per unit for the Alts vs. Consensus 400Y2013 2014 2016 Alts DB Cons. %diff DB Cons. %diff APO $0.82 $0.80 1.9% $2.50 53.04 -17.7% BX 30.84 5082 2.3% $3.09 $2.98 3.7% CG $0.93 $0.87 6.8% $2.70 33.17 -14.8% KKR $0.96 $0.89 8.4% 52.33 $2.52 -7.5% OAK 31.19 $1.15 3.6% $4.36 $4.80 -9.2% Median 3.6% -9.2% Sono Thomson Aaron &be O*.eselx Ban 'Figure 19: DB Forecasts for Distribution per unit for the Alts vs. Consensus 40CY2013 2014 Alts DB Cons. %diff C8 Cons. %diff APO $0.80 30.79 1.4% 33.06 $2.48 23.3% BX $0.47 50.45 3.7% $1.95 $1.78 9.3% CG $1.20 $1.17 2.8% $2.22 $2.03 9.3% KKR $0.39 30.39 -0.5% 31.58 $1.44 10.0% OAK $0.91 50.92 -0.8% $3.78 $3.75 0.9% Median 1.4% 9.3% Saga ?Mown Arian neewtm Sort Our valuation methodology While valuation methodologies using sum of the parts or DCF models can be intellectually rigorous, we think a more simplified PIE approach on distributable earnings (DE) will end up being a better indicator of the Ails' unit price performance over time. Our approach works in the following steps: • Observe each of the Alts forward P/E on Consensus (ENI) over