Inside the Strategy Room 253. Private capital gets more alternative
May 29, 2025
Neil Mehta, a partner and global head of new markets at Apollo Global Management, shares insights on the evolution of private capital. He discusses the rise of non-traditional investment structures and the complexities these introduce for asset managers. The conversation navigates the shift from public to private markets and highlights the need for better investor experiences amid regulatory challenges. Mehta also addresses the transition from B2B to B2C in private capital, emphasizing the demand for customized financial products and innovative strategies to meet diverse investor needs.
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Rapid Growth of Novel Fund Structures
- Novel, non-commingled fund structures are the fastest growing segment in private capital, growing at about 20% in 2024.
- This growth explains why the overall private market is expanding despite slow growth in traditional fund structures.
Convergence of Private and Public Markets
- The private capital market is converging with public markets and various financial services, blurring traditional boundaries.
- Differentiated products and solutions are critical to meet needs around liquidity, access, and tax considerations.
Customize Fundraising to Investor Needs
- GPs must shift to a solutions-driven fundraising model, customizing products to meet investors' unique regulatory, geographic, and portfolio needs.
- This approach requires coordinated governance, investment collaboration, and tailored reporting throughout the firm.