Improved manufacturing processes and resulting anisotropic permanent magnets, such as for example alnico permanent magnets, having highly controlled and aligned microstructure in the solid state are provided. A certain process embodiment involves applying a particular orientation and strength of magnetic field to loose, binder-coated magnet alloy powder particles in a compact-forming device as they are being formed into a compact in order to preferentially align the magnet alloy powder particles in the compact. The preferential alignment of the magnet alloy powder particle is locked in place in the compact by the binder after compact forming is complete. After removal from the device, the compact can be subjected to a subsequent sintering or other heat treating operation.