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1. Company Snapshot

1.a. Company Description

BrightSphere Investment Group Inc.is a publically owned asset management holding company.The firm provides its services to individuals and institutions.


It manages separate client focused portfolios through its subsidiaries.The firm also launches equity mutual funds for its clients.It invests in public equity, fixed income, and alternative investment markets through its subsidiaries.


The firm was founded in 1980 is based Boston, Massachusetts.It was formally known as BrightSphere Investment Group plc.BrightSphere Investment Group Inc.


was formed in 1980 and is based in Boston, Massachusetts.

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1.b. Last Insights on BSIG

BrightSphere Investment Group's recent struggles can be attributed to intense competition in the finance sector, as evident from its underperformance compared to peers such as Colony Bankcorp and CBRE Group. The company's investment management business faces challenges in generating strong revenues and earnings growth, which may impact its 2025 prospects. Despite being listed as a promising investment management stock for 2025, BrightSphere needs to address these concerns to regain momentum.

1.c. Company Highlights

2. Acadian's Q3 2025 Earnings: Strong AUM Growth and Investment Performance

Acadian's financial performance in Q3 2025 was marked by a significant increase in Assets Under Management (AUM) to $166.4 billion, a record high for the company. The U.S. GAAP net income attributable to controlling interest was down 11% and EPS was down 7% compared to the prior year, primarily due to increased operating expenses driven by non-cash expenses. However, the ENI diluted EPS of $0.76 was up 29%, and adjusted EBITDA was up 12%, driven by significant growth in recurring base management fees and share repurchases. The actual EPS came out at $0.59, beating estimates of $0.48.

Publication Date: Nov -12

📋 Highlights

Revenue Growth and Profitability

The company's revenue growth is expected to continue, with analysts estimating a 7.7% increase in revenues for the next year. Acadian's investment performance track record remains strong, with 95% of its strategies by revenue outperforming benchmarks over a 5-year period, with a 4.5% annualized excess return. The company's ability to generate strong investment performance is a key driver of its revenue growth and profitability.

Valuation Metrics

Acadian's valuation metrics indicate a premium valuation relative to its earnings and book value. The company's P/E Ratio is 17.93, and its P/B Ratio is 77.18, indicating that investors are willing to pay a premium for the company's earnings and book value. The P/S Ratio is 2.75, which is relatively moderate. The EV/EBITDA ratio is 8.43, indicating a reasonable valuation relative to the company's EBITDA. The ROE is 492.57%, which is extremely high, but the ROIC is -86.41%, indicating that the company's invested capital is not generating returns.

Business Momentum and Outlook

Acadian's business momentum continued in Q3 2025, with net inflows of $6.4 billion, the second highest in the firm's history. The company's systematic investment capabilities and strong brand advantage in international investing, particularly in emerging markets, are expected to drive continued growth. As Kelly Ann Young noted, "Acadian is competitively positioned as the only pure-play publicly traded systematic manager with a nearly 40-year track record and competitive edge in systematic investing." The company's focus on intentional hiring and its strong brand advantage are expected to continue to drive growth.

Systematic Fixed Income Capabilities

Acadian is also building its capabilities in systematic fixed income, with a team led by Scott Richardson, who has a strong pedigree in both equity and fixed income investing. While the track records are still in the incubation stage, the team's consistent positive performance is starting to resonate with clients, and the company feels confident in its ability to manage meaningful assets in this space over the medium to long term.

3. NewsRoom

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Are Finance Stocks Lagging BrightSphere Investment Group (BSIG) This Year?

Dec -30

Source: zacks.com

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Buy 5 Investment Management Stocks to Enrich Your Portfolio in 2025

Dec -19

Source: zacks.com

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Is BrightSphere Investment Group (BSIG) Stock Outpacing Its Finance Peers This Year?

Dec -13

Source: zacks.com

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5 Must-Have High Earnings Yield Stocks for Value Investors

Nov -29

Source: zacks.com

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Top 3 Stocks With Strong Earnings Acceleration to Buy

Nov -27

Source: zacks.com

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Is BrightSphere Investment Group (BSIG) Outperforming Other Finance Stocks This Year?

Nov -27

Source: zacks.com

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BrightSphere Investment Group (BSIG) Is Up 6.64% in One Week: What You Should Know

Nov -14

Source: zacks.com

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Here is Why Growth Investors Should Buy BrightSphere Investment Group (BSIG) Now

Nov -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.01%)

6. Segments

Quant & Solutions

Expected Growth: 7%

Quant & Solutions' 7% growth is driven by increasing adoption of data-driven investment strategies, expansion into alternative asset classes, and strong demand for customized portfolio solutions. Additionally, BrightSphere's strategic acquisitions and investments in technology have enhanced the segment's capabilities, further fueling growth.

Reconciling Adjustments

Expected Growth: 9%

BrightSphere Investment Group Inc.'s 9% growth is driven by increasing assets under management (AUM), successful acquisitions, and strategic partnerships. Additionally, the company's diversified investment platform, strong brand recognition, and cost savings initiatives contribute to its growth momentum.

7. Detailed Products

Active Equity

BrightSphere Investment Group Inc. offers active equity investment strategies that aim to deliver long-term returns through a combination of fundamental research and quantitative analysis.

Fixed Income

The company provides fixed income investment solutions that focus on generating income and preserving capital through a range of bond and credit strategies.

Alternative Investments

BrightSphere Investment Group Inc. offers alternative investment strategies, including private equity, real assets, and hedge funds, to provide diversification and return enhancement.

Multi-Asset Solutions

The company provides multi-asset investment solutions that combine different asset classes to achieve specific investment objectives, such as income generation or capital growth.

ESG and Responsible Investing

BrightSphere Investment Group Inc. offers environmental, social, and governance (ESG) and responsible investment strategies that integrate ESG considerations into the investment process.

8. BrightSphere Investment Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BrightSphere Investment Group Inc. is medium due to the presence of alternative investment options for clients, such as robo-advisors and index funds.

Bargaining Power Of Customers

The bargaining power of customers is low due to the complexity of investment products and the lack of price sensitivity among institutional clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of investment products and services, but also due to the importance of these suppliers to BrightSphere's business.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the investment management industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established players in the investment management industry, leading to intense competition for clients and assets under management.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 87.53%
Debt Cost 9.55%
Equity Weight 12.47%
Equity Cost 11.69%
WACC 9.82%
Leverage 702.24%

11. Quality Control: BrightSphere Investment Group Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Monroe Capital

A-Score: 6.8/10

Value: 6.1

Growth: 5.7

Quality: 7.1

Yield: 10.0

Momentum: 3.0

Volatility: 8.7

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Newtek Business Services

A-Score: 6.3/10

Value: 8.2

Growth: 4.2

Quality: 6.1

Yield: 10.0

Momentum: 3.0

Volatility: 6.0

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BNY Mellon Strategic Municipals

A-Score: 6.1/10

Value: 5.4

Growth: 4.1

Quality: 5.5

Yield: 7.0

Momentum: 4.5

Volatility: 10.0

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Silvercrest Asset Management Group

A-Score: 5.8/10

Value: 6.5

Growth: 3.0

Quality: 6.4

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Logan Ridge Finance

A-Score: 5.3/10

Value: 6.5

Growth: 5.8

Quality: 2.4

Yield: 6.0

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

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BrightSphere

A-Score: 4.6/10

Value: 2.7

Growth: 6.3

Quality: 7.1

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.34$

Current Price

26.34$

Potential

-0.00%

Expected Cash-Flows