10 Cheap Asset Management Stocks to Buy Now

7. The Carlyle Group Inc. (NASDAQ:CG)

Forward P/E: 10.4

Upside Potential: 27%

Number of Hedge Fund Holders: 32

The Carlyle Group Inc. (NASDAQ:CG) is a global investment firm that focuses on private equity, credit, and real assets. Managing over $440 billion in assets under management (AUM), the company invests across various industries, including technology, healthcare, infrastructure, and financial services.

Renowned for its strong track record of value creation within portfolio companies, The Carlyle Group Inc. (NASDAQ:CG) benefits from long-term capital commitments that provide visibility into its earnings. In FY 2024, the firm deployed $43 billion in funds, marking a 48% increase from the $29 billion deployed in 2023. With rising investor interest in alternative investments, the company is well-positioned to capitalize on robust fundraising and capital deployment opportunities.

In their Q4 2024 Investor Letter, Portfolio Managers of Oakmark Fund (Harris Associates) commended The Carlyle Group Inc. (NASDAQ:CG)’s new leadership for taking effective measures to expand the firm’s focus beyond its private equity roots, paving the way for stronger organic growth. The company’s established brand and extensive distribution network further equip it to seize the increasing demand for alternative investment opportunities in the retail sector. Despite these promising developments and a positive growth trajectory, the portfolio managers noted that the company continues to trade at less than half the P/E multiple of its peers, presenting a notable discount compared to other financial services firms with similar growth potential.

Following the Q4 2024 results on February 11, a Barclays analyst reduced The Carlyle Group Inc. (NASDAQ:CG) price target from $60 to $55, while maintaining an Overweight rating on the stock. The analyst noted that the company’s fiscal 2025 performance was slightly softer than expected.