Hello there! I’m Michael, and I’m thrilled to have you here at AGM, the hub for the latest in private markets. Through my newsletter, AGM Alts Weekly, I bring you the freshest insights and updates every Sunday on how these markets are changing. I dive into the news, discuss trends, and offer valuable perspectives. I also compile a range of resources, including an index of publicly traded alternative asset managers, job postings in private market firms, and recent thought leadership from industry experts. Keep your finger on the pulse of private markets with us and steer through the changes with confidence.
Now, let me give you a snapshot of the week’s events. I’m checking in from London where I’m moderating a panel discussion at IPEM Wealth in Cannes—an exciting session about how fund managers are evolving to tap into wealth opportunities. I’m alongside industry stalwarts like KKR’s Alisa Amarosa Wood and EQT’s Peter Beske Nielsen, to name just a few. If you’re around, do feel free to say hello!
Setting aside business, I’d be remiss if I didn’t mention my enthusiasm for the Commanders. Tonight’s NFC Conference Championship game against the Philadelphia Eagles has me amped up. It’s such a significant game that my mom flew over to London so we could experience it together, sharing in a momentous occasion for Commanders fans that we haven’t seen in decades.
This week also brought us substantial news from Chicago, notably, the closure of an $800M debut GP seeding fund by GCM Grosvenor, marking the largest such fund in the industry. It’s exciting to see big-name LPs like CalPERS, with their hefty $500M commitment, getting on board. This underscores a burgeoning interest as alternative asset management continues to advance and diversify.
Private markets are attracting more capital with different investor profiles—from wealth channels to insurance companies. Many in the sector are spinning off from established firms to carve out their unique paths, wanting to leverage their talent for enterprise and equity value but often lacking the requisite capital.
As private markets expand, fund sizes need to match the available opportunities. Especially with specific strategies, scale matters even more, as highlighted by Blue Owl’s data showing that the largest managers rake in most of the capital relative to peers. Yet, fundraising remains a challenge, partly due to macroeconomic forces.
The landscape is demanding; the window for raising funds has extended significantly, spelling particular trouble for first-time fundraisers who haven’t yet built a name. But there’s a catch—emerging managers frequently outperform established ones, with smaller funds often achieving better returns by getting in at lower valuations.
What’s clear is the need for smart investor-allocator relationships, particularly with eclectic strategies in mind. Platforms like GCM Grosvenor and firms like TPG Next are critical in providing managers the bootstrapping needed for long-term success.
Additionally, firms like Owl Rock exemplify how to scale efficiently in alternate asset management, focusing on strategic fee structuring and capital acquisition to expedite growth. Their merger with Dyal Capital Partners and subsequent public listing are the results of astute planning and strategic objectives aligned with expanding permanently.
It’s no longer unusual for big firms to open up equity in their businesses for GP seeders or stakers. This concept aligns the interests of LPs and fund managers, as outlined by Sean Ward from Blue Owl in his engaging talk—acknowledging the capital-heavy nature of private equity and the necessity for such alignments.
With these openings, private market growth will be driven by many factors enhancing the platform’s ability to take on more AUM. Firms not only aim to expand their capital base but also to create enduring success stories in the financial sector.
Finally, let’s keep the dialogue going in our community. Connect with industry professionals, explore career opportunities in private markets, and check out recent articles, podcasts, and live events that stimulate and inform.
For detailed insights and ongoing discussions, subscribe and join our community on LinkedIn and Twitter. I appreciate the collaboration and continual learning we share here, thanks to contributions from individuals like Michael Rutter and Nick Owens. Let’s share more knowledge and encourage growth across our networks.
Thank you for reading Alt Goes Mainstream. If this resonates with you, please spread the word among peers interested in private markets.
