Going Public with Evercore's Glenn Schorr - Ep. 2
Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets
Capital Allocation Dynamics in Uncertain Times
This chapter explores the intricacies of capital allocation by limited partners against the backdrop of a fluctuating credit cycle. It highlights the strategic advantages held by larger firms in private markets and discusses future trends in mergers, acquisitions, and asset-backed financing.
Welcome back to Going Public with Evercore’s Glenn Schorr.
On the latest episode of Going Public, we drop the beat on F.R.E.A.M.
Paying homage to Wu-Tang Clan’s song “C.R.E.A.M.” (“Cash rules everything around me”), Glenn discusses why “Fees rule everything around me” in asset management.
We cover some of last quarter's most pressing topics in alternative asset management, including:
- How alternative asset managers balance fee generation with returns.
- Does major growth still lie ahead for alternative asset managers?
- Why “fees rule everything around me,” but so does alpha generation.
- Why does distribution (almost always) win in asset management?
- What’s the most valuable aspect of a publicly traded alts manager having a public currency?
- What is Glenn keeping his eye on for next quarter?
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
00:38 Meet Glenn Schorr
01:52 Wu-Tang Clan and Asset Management
02:40 F.R.E.A.M.: Fees Rule Everything Around Me
02:49 Public Investors and Revenue Streams
03:47 Balancing Fee Growth and Investment Returns
05:50 Talent Migration and Fee Justification
06:38 Migration to Private Markets
07:07 Deregulation and Its Impact
09:31 Structural Challenges for Banks
09:58 Growth in Alternative Asset Management
12:19 Wealth Channel and Private Markets
13:13 Private Equity Performance
15:37 Education Process for Investors
16:27 Perpetual Private Equity Products
17:35 Model Portfolios: The Next Frontier
21:00 Distribution and Asset Management
24:24 Corporate Strategy and Partnerships in Asset Management
27:10 Public vs. Private Firms
29:56 Acquisitions and Growth Strategies
31:09 Specialty Managers and Market Trends
33:12 Big TAMs and Investment Opportunities
36:15 Consolidation in the Industry
38:16 Surprises and Trends in the Quarter
39:44 Deployment and Investment Grade Private Credit
40:03 Credit Cycles and Market Concerns
41:15 Data Centers and AI Investments
41:54 Size and Scale in Asset Management
45:19 Bank and Asset Manager Partnerships
46:15 Looking Ahead: Thoughts on the Next Quarter
47:10 Conclusion and Final Thoughts
Company Coverage and Disclosures
Evercore ISI
Glenn Schorr
| Ticker | Company
| 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.
| 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.
| OWL | Blue Owl Capital, Inc
| Evercore ISI or an affiliate has acted as a manager or co-manager of a public offering of securities by Blue Owl Capital, Inc in the last 12 months.
| Blue Owl Capital, Inc is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Blue Owl Capital, Inc in the last 12 months.
| Evercore ISI or an affiliate has received compensation from Blue Owl Capital, Inc for investment banking services in the last 12 months.
| BSIG | BrightSphere Investment
| C | Citigroup, Inc.
| 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 Citigroup, Inc.
| Glenn Schorr holds a long position in equity securities of Citigroup, Inc.
| BEN | Franklin Resources, Inc.
| Glenn Schorr holds a long position in equity securities of Franklin Resources, Inc.
| GS | Goldman Sachs Group Inc.
| IVZ | Invesco Ltd.
| JPM | JPMorgan Chase & Co.
| Glenn Schorr holds a long position in equity securities of JPMorgan Chase & Co.
| KKR | KKR & Co. Inc.
| KKR & Co. Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to KKR & Co. Inc. in the last 12 months.
| Evercore ISI or an affiliate has received comp...
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