Kristin Kallergis Rowland discusses fee compression trends across alternative asset classes at J.P. Morgan Wealth Management.
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“Credit side, we definitely have. Even over the last three years, we've probably seen about 25 basis points lower on the management fee side, and on the carry, maybe down two and a half to five percent.”
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Disclosure
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Kristin Kolurgis-RolandMay 26, 2025▶ 15:45Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
PredictionHeld up
Direct lending returns will likely fall 200 basis points as banks re-enter
“As that market continues to evolve, and as the banks start to get back into some of these areas, we do think returns are going to come down. Probably by about 200 basis points on average.”
Kristin Kolurgis-RolandMay 26, 2025▶ 24:20Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
Insight
Wealth clients prefer 8-10% evergreen funds over 11-14% drawdown lockups
“For managers that are in the, what I call, no man's land, And this is what I mean by that. Your returns are somewhere between 11 to 14% net returns is what you've delivered, and you are looking to lock up your capital for 10 to 15 years, and no one ever ends o…”
Kristin Kolurgis-RolandMay 26, 2025▶ 42:47Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
AssertionNot checkable as stated
Return dilution in evergreen funds ranges from 200 to 500 basis points
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Kristin Kolurgis-RolandMay 26, 2025▶ 44:22Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
Insight
The optimal private markets portfolio contains between 22 and 27 funds
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Kristin Kolurgis-RolandMay 26, 2025▶ 49:19Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
AssertionSupported
Multiple expansion drove half of private equity returns over the last decade
“So if you look at the private equity industry, the data tells you that over the last decade, half the returns came from multiple expansion.”
Kristin Kolurgis-RolandMay 26, 2025▶ 20:21Kristin Kallergis Rowland – Alts at J.P. Morgan's Private Bank (Private Wealth 4, EP.447)
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