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Morgan Stanley | researcr NORTH AMERICA INSIGHT 2 January 30, 2018 05:01 AM GMT Alternative Asset Managers Can Alts Unlock Value with C-Corp Conversions ° We think APO could unlock the most value by converting to a C-corp with 26% in our upside case vs. -14% in our downside case. ARES could be the first to convert, but this is largely priced in. These firms have more sticky management fee-related earnings vs. BX/CG/KKR that may see Less benefit. NY —_ . <a “ze > Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. HOUSE_OVERSIGHT_025551