Fundraising Divergence, Scale, and Perpetual Capital

We are back with the latest Going Public with Evercore’s Glenn Schorr.

On this episode of Going Public, we unpack the rollercoaster of the past few months in private markets for alternative asset managers. Private markets is much more than private equity — and this episode dives into nuances of specific strategies and what it means for alternative asset managers’ businesses.

We discussed:

• Will the exit environment for private equity improve?
• Are animal spirits back in markets — and what does it mean for exits?
• Why and how private markets is more than private equity and private real estate.
• Why the wealth channel has been a contributor to alternative asset manager growth.
• How are banks responding to the expanding reach of private credit?
• Why private real estate could be a compelling category going forward, with 90%+ of real estate being privately owned.

Making private markets more public — with expert analysis

Alt Goes Mainstream has partnered with an expert who has seen the evolution of alternative asset managers from their early days.

Glenn Schorr is a Senior MD and Senior Research Analyst at Evercore ISI, where he covers brokers, banks, asset managers, and trust banks as an analyst. 

He has covered financials since 2000 and started coverage of alternative asset managers when the first firms went public.

He’s consistently come up as one of the most thoughtful and well-respected analysts in the space. He balances deep research with a creative flair (just read one of the titles of his research reports and you can see his love of the game). He’s been named to Institutional Investor’s All-America Research Team for his coverage, most recently ranking #2 and runner up in 2023, #1 and #2 in 2022. Prior to Evercore, Glenn was a Senior MD at Nomura, serving as the lead financials analyst. 

Listen in as Glenn shares market stories, the evolution of alternative asset managers as businesses, the biggest and most exciting trends in private markets based on what the industry’s largest players are doing, and we go “around the horn” for his analysis on the publicly traded firms.

Show Notes
00:00 Introduction and Countdown

00:15 Introduction to Alt Goes Mainstream

00:48 Meet Glenn Schorr: Wall Street Analyst

02:08 Market Trends and Earnings Season

02:15 Impact of Tariffs and Market Activity

03:20 M&A and IPO Activity

03:35 Private Equity and Market Dynamics

04:34 Optimism in the Market

06:11 Fundraising and Stock Prices

06:52 Private Credit and Infrastructure

08:31 Scale and Diversification

10:19 Perpetual Capital and Investor Mindset

13:51 Mega Trends and Long-Term Investments

15:50 Real Estate and Market Cycles

17:14 Long-Term View on Asset Managers

20:04 Fee Structures and Performance

24:15 Wealth Channel and Operational Challenges

26:17 Institutional vs. Retail Investors

28:41 Public vs. Private Markets

31:01 Ceiling on Capital Raising

31:42 Stewardship and Capacity Management

33:03 Private Credit Market

33:27 Direct Lending Market

33:43 Competitive Banking Landscape

33:55 Current State of Direct Lending

34:22 Private Credit Market Expansion

34:52 Investment Grade Private Credit

36:19 Banks vs. Private Credit

37:39 Banks' Adaptation Strategies

38:53 Private Credit Market Size

41:01 Insurance and Private Markets

41:44 Apollo's Insurance Strategy

43:45 Insurance Balance Sheet Power

44:32 Insurance and Wealth Channels

44:54 Private Wealth Return Hurdles

46:47 Product Innovation in Private Markets

47:00 Alternative Asset Managers' Strategies

49:43 Wealth Channel Product Choices

50:39 Approval Process for Wealth Platforms

52:29 Third-Party Evaluators in Private Markets

53:28 Convergence of RIAs and Investment Consultants

54:15 Distribution Strategies for Asset Managers

55:39 Servicing and Education in Private Markets

56:16 Segmenting the Wealth Channel

56:43 Morgan Stanley's Advisor Strategies

57:45 Notable Developments in Private Markets

59:19 Optimism in Financial Markets

01:00:39 Concluding Thoughts and Future Outlook

Editing and post-production work for this episode was provided by The Podcast Consultant.

Company Coverage and Disclosures

Evercore ISI

Glenn Schorr

| Ticker | Company
| AAMI | Acadian Asset Management
| APO | Apollo Global Management, Inc.
| BAC | Bank of America Corporation
|   | Glenn Schorr holds a long position in equity securities of Bank of America Corporation.
| BK | Bank of New York Mellon Corp.
|   | Bank of New York Mellon Corp. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Bank of New York Mellon Corp. in the last 12 months.
|   | Evercore ISI or an affiliate has received compensation from Bank of New York Mellon Corp. for investment banking services in the last 12 months.
|   | Glenn Schorr holds a long position in equity securities of Bank of New York Mellon Corp.
| BLK | BlackRock, Inc.
|   | BlackRock, Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to  BlackRock, Inc. in the last 12 months.
|   | Evercore ISI or an affiliate expects to receive or intends to seek compensation for investment banking services from BlackRock, Inc. within the next three months.
|   | Glenn Schorr holds a long position in equity securities of Blackrock Inc.
| BX | Blackstone, Inc.
|   | Blackstone, Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Blackstone, Inc. in the last 12 months.
|   | Evercore ISI or an affiliate expects to receive or intends to seek compensation for investment banking services from  Blackstone, Inc. within the next three months.
|   | An employee, employee's immediate family member, director or consultant of Evercore ISI or one of its affiliates (but not the covering research analyst or a member of the covering research analyst's household)is an officer, director or advisory board member of Blackstone, Inc..
|   | Evercore ISI or an affiliate has received compensation from Blackstone, Inc. for investment banking services in the last 12 months.
|   | Analyst has a financial interest in a private equity fund managed by Blackstone, Inc..
|   | Glenn Schorr holds a long position in equity securities of Blackstone, Inc.
|   | A member of Benjamin Rubin's household holds a long position in equity securities of Blackstone, Inc.
| OWL | Blue Owl Capital, Inc
| C | ...