Going Public with Glenn Schorr - Ep. 4: Unpacking the past few months in private markets

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 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 and Countdown 00:15 Introduction to Alt Goes Mainstream 00:48 Meet Glenn Schorr: Wall Street Analyst 02:08 Market Trends and Earnings Season 02:15 Impact of Tariffs and Market Activity 03:20 M&A and IPO Activity 03:35 Private Equity and Market Dynamics 04:34 Optimism in the Market 06:11 Fundraising and Stock Prices 06:52 Private Credit and Infrastructure 08:31 Scale and Diversification 10:19 Perpetual Capital and Investor Mindset 13:51 Mega Trends and Long-Term Investments 15:50 Real Estate and Market Cycles 17:14 Long-Term View on Asset Managers 20:04 Fee Structures and Performance 24:15 Wealth Channel and Operational Challenges 26:17 Institutional vs. Retail Investors 28:41 Public vs. Private Markets 31:01 Ceiling on Capital Raising 31:42 Stewardship and Capacity Management 33:03 Private Credit Market 33:27 Direct Lending Market 33:43 Competitive Banking Landscape 33:55 Current State of Direct Lending 34:22 Private Credit Market Expansion 34:52 Investment Grade Private Credit 36:19 Banks vs. Private Credit 37:39 Banks' Adaptation Strategies 38:53 Private Credit Market Size 41:01 Insurance and Private Markets 41:44 Apollo's Insurance Strategy 43:45 Insurance Balance Sheet Power 44:32 Insurance and Wealth Channels 44:54 Private Wealth Return Hurdles 46:47 Product Innovation in Private Markets 47:00 Alternative Asset Managers' Strategies 49:43 Wealth Channel Product Choices 50:39 Approval Process for Wealth Platforms 52:29 Third-Party Evaluators in Private Markets 53:28 Convergence of RIAs and Investment Consultants 54:15 Distribution Strategies for Asset Managers 55:39 Servicing and Education in Private Markets 56:16 Segmenting the Wealth Channel 56:43 Morgan Stanley's Advisor Strategies 57:45 Notable Developments in Private Markets 59:19 Optimism in Financial Markets 01:00:39 Concluding Thoughts and Future Outlook Editing and post-production work for this episode was provided by The Podcast Consultant. Company Coverage and Disclosures Evercore ISI Glenn 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 | ...