The Ledger, every show

“That's really the big pony here, is there's trillions of dollars in Wealth Channel Capital that is looking to flow into private markets because they're under allocated.”

“I'll call out a Bain survey from twenty-twenty-two. Bain and company asked 418 ultra high net worth individuals. Name three firms that come to mind when you think of alternative assets and who are the providers. First answer, the biggest answer in the bubble c…”

“The top six firms account for the majority of market share of capital raised in private markets. On average, the top six firms, 20, 24, they raised twelve billion dollars. The top seven through 25 firms only raised 1.7 billion dollars.”

“I'd say roughly about, on average, one to three percent of the 145 trillion of assets that Bain talks about is actually allocated to private markets within the wealth channel.”

“So I think there's room for really high quality, smaller, more niche managers. They're really good at something. They will be able to raise capital from the wealth channel.”

“The wires, I still think will be the largest source of flows from the wealth channel into private markets.”

“And even I think we'll get to the Robin Hoods, the Revoluts, the SoFi's, which has embedded some private markets products to the wealth channel within their complex as well.”

“You are starting to see some hedge funds think about private credit, and you are starting to see some hedge funds think about longer lock vehicles. So they're kind of getting into certain aspects of private markets that a larger multi-strategy alternative asse…”

“If you're in a drawdown fund, you have to generate high teens returns to get the same multiple uninvested capital over a ten-year period as you would if you're getting low teens IRRs in an evergreen structure.”

“Insurance companies are going to be much bigger allocators. Lincoln recently partnered with Bain and Partners Group, these really strategic partnerships. They have hundreds of billions of dollars in the general account to invest into private markets and So the…”

“I think for this space to continue to mature and grow, content is going to be critical and content's going to be at the core of how firms think about capital raising.”

“Blackstone, about 40 years old, started with 300,000 dollars of capital under management. They're now over a trillion dollars of assets. About a fourth of that, two hundred fifty billion or so, comes from the wealth channel today.”

“Wealth management as both a business and the way it's investing in private markets is institutionalizing itself. Those firms are acquiring OCIOs to Add capabilities that give them institutional quality diligence and processes to invest in private markets.”

“Blackstone has a team of hundreds of people. Blue Owl, hundreds of people, KKR, Apollo, hundreds of people to serve the Wealth Channel.”

“We're starting to see the independent channel, which is the fastest growing part of the wealth management space. It's growing faster in terms of assets than the wire houses.”

“If you think about the different strategies within private markets, private equity, which has the largest pool of capital within the 15 trillion dollars or so of private markets assets, so it's about five or six trillion dollars of assets. Private credit is gr…”

“You have private credit secondaries, which has grown, I think, 17 times. Still a small market is like thirty billion of assets, but growing because private credit is now growing.”

“Evergreen structures are generally lower fee, one 25, one 50, maybe one 75 in certain cases, lower carry, but the management fee and carry is charged on net asset value.”

“Goldman had a report on evergreens in the fall of twenty-twenty-four, and there's really only in the U.S. At the time, there's like 200 evergreen funds. So there's not a lot of choices relative to the thousands of closed-end funds that people can invest in.”

“Evergreens just make it easier, the capital compounds in theory, and then you get a 10 99, you don't get a K-one. So it's just easier from a operational perspective.”

“He had built a financial services investment bank. It's now about 65 people, done a hundred billion or so of M&A transaction volume, all financial services focused.”