Show notes
Welcome back to Going Public with Evercore’s Glenn Schorr.On the latest episode of Going Public, we dive for the loose balls in private markets’ March Madness as Glenn shares his thoughts on why it’s important to separate the forest from the trees when it comes to why certain firms make his “Final Four.”We cover some of the most pressing topics in alternative asset management, including:Separating the forest from the trees — dissecting alternative asset manager stock performance versus long-term business performance.Views on the exit environment and what it means for alternative asset manager stock performance.Where and why does scale matter?Are banks and alternative asset managers enemies, frenemies, or collaborators, particularly in areas like private credit?Why does Glenn believe the secular growth trends of private markets and how that impacts alts managers is a fat pitch?In the spirit of March Madness, Glenn shares his bracketology on which firms make his “Final Four.”Subscribe to Alt Goes Mainstream to receive the weekly newsletter every Sunday and all of AGM’s podcasts.Making private markets more public — with expert analysisAlt 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 Notes00:00 Introduction and Countdown00:06 Going Mainstream00:45 Welcome to the Series00:58 Meet Glenn Schorr01:31 Market Stories and Trends01:54 Live from Evercore02:04 Earnings and Market Volatility02:07 Secular Growth Businesses02:39 Anticipation and Uncertainty03:26 Alternative Managers' Performance04:36 Private Markets and Infrastructure05:53 Valuation and Market Corrections07:28 Investment Opportunities in Market Downturns07:54 Fundraising and Fee Related Earnings08:01 Capital Raising Challenges09:36 Super Alts Firms12:22 Brand and Consistency13:16 Acquisitions and Growth Strategies15:33 Banks vs. Alternative Managers16:26 Private Credit and Direct Lending24:45 Asset Classes Shifting from Public to Private Markets25:09 Duration Mismatch in Banking and Loans25:32 Regulatory and Capital Arbitrage26:01 Flexibility in Private Markets26:30 Impact of Stock Prices on Strategic Acquisitions27:01 Stock Deals and Control in Acquisitions28:29 Accretive Acquisitions and Capital Raising31:29 Scale Benefits in Private Markets31:50 Big Ticket Transactions and Scale33:05 Investor Understanding of Scale in Private Markets33:37 Challenges in Public Market Investment in Alternative Managers36:50 Long-Term Trends in Private Markets38:03 Risks in Private Markets38:55 Transparency and Oversight in Private Markets39:30 Thematic Investing and Long-Term Trends40:31 Private Markets Framework for Public Stocks41:30 Emotional Investing and Long-Term Capital43:25 Geopolitical and Economic Policy Impacts45:38 March Madness: Top 4 Manager Picks47:09 Conclusion and Final ThoughtsEditing and post-production work for this episode was provided by The Podcast Consultant.Company Coverage and DisclosuresEvercore ISIGlenn 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 (b...