Show notes
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 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 Countdown00:15 Introduction to Alt Goes Mainstream00:48 Meet Glenn Schorr: Wall Street Analyst02:08 Market Trends and Earnings Season02:15 Impact of Tariffs and Market Activity03:20 M&A and IPO Activity03:35 Private Equity and Market Dynamics04:34 Optimism in the Market06:11 Fundraising and Stock Prices06:52 Private Credit and Infrastructure08:31 Scale and Diversification10:19 Perpetual Capital and Investor Mindset13:51 Mega Trends and Long-Term Investments15:50 Real Estate and Market Cycles17:14 Long-Term View on Asset Managers20:04 Fee Structures and Performance24:15 Wealth Channel and Operational Challenges26:17 Institutional vs. Retail Investors28:41 Public vs. Private Markets31:01 Ceiling on Capital Raising31:42 Stewardship and Capacity Management33:03 Private Credit Market33:27 Direct Lending Market33:43 Competitive Banking Landscape33:55 Current State of Direct Lending34:22 Private Credit Market Expansion34:52 Investment Grade Private Credit36:19 Banks vs. Private Credit37:39 Banks' Adaptation Strategies38:53 Private Credit Market Size41:01 Insurance and Private Markets41:44 Apollo's Insurance Strategy43:45 Insurance Balance Sheet Power44:32 Insurance and Wealth Channels44:54 Private Wealth Return Hurdles46:47 Product Innovation in Private Markets47:00 Alternative Asset Managers' Strategies49:43 Wealth Channel Product Choices50:39 Approval Process for Wealth Platforms52:29 Third-Party Evaluators in Private Markets53:28 Convergence of RIAs and Investment Consultants54:15 Distribution Strategies for Asset Managers55:39 Servicing and Education in Private Markets56:16 Segmenting the Wealth Channel56:43 Morgan Stanley's Advisor Strategies57:45 Notable Developments in Private Markets59:19 Optimism in Financial Markets01:00:39 Concluding Thoughts and Future OutlookEditing and post-production work for this episode was provided by The Podcast Consultant.Company Coverage and DisclosuresEvercore ISIGlenn 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 | ...