John Zito

You've historically had a market structure where institutions and actually probably 20 or 30 institutions controlled or dominated the private markets and defined private markets as private equity in all asset categories, private equity and in for a real estate and true corporate.

And now you have the evolution of the wealth business and 91% of private wealth clients don't have an alt.

And that's growing at very fast rate where people are trying to get access to private assets because most companies have gone private and don't go public until they get access to the whole economy.

You probably need to own private assets.

The structure of those vehicles in evergreen form versus the traditional drawdown form where you call capital, you're going to have lower headline returns, IRR versus actually evergreen returns.

Now, I think I told you about this, which is I did this comic where you have the two people at their 10-year reunion and one person says, oh, I've saved a hundred grand and

The other girl, Susie, says, I saved 100 grand.

Let's make sure we invest it well.

And then they show the 20-year reunion.

You come back, and he's got this nice suit on, and he says, I've absolutely killed it.

I invested in all these private, and I made 32%.

Next frame, she has this really sad face, and she's like, I invested in all these evergreen strategies and made 13.

And she's just curious, how much do you have?

And he says, I have 180 grand.

She goes, I have 330.

I don't understand.

I explained that story to my friends, my in-laws, people who are in the business.

It's still not understandable.

It's not understandable to them that somebody could say they made 32% a year and someone made 12 and somehow one of them has more money than the other because of the compounding elements of it.

And I know that you get it, but as you go down distribution channel of more evergreen products, you're going to see a much more normal risk reward where equity is making somewhere between high single digits and low double digits.