CAIS Summit Underscores the Growing Adoption of Alts in Wealth Space

Core Themes - The convergence of public and private markets is highlighted by an increase in mergers and partnerships among traditional and alternative asset managers, with new products entering the market [1] - Evergreen funds are emerging as the preferred vehicle for delivering private market investments to wealth management channels, with over 400 registered funds available, half of which were launched in the last 24 months [2] - The global AUM of semiliquid funds is projected to grow 12-fold to $4.1 trillion over the next five years, indicating a significant shift in the asset management landscape [2] Industry Trends - Attendance at the CAIS Summit has increased significantly, from a few hundred to over 1,200 attendees, including 325 wealth management firms and 800 advisors [4] - Major alternative asset managers such as Apollo, Blackrock, and KKR are increasingly targeting the wealth management space, reflecting a broader trend of institutional firms entering private wealth [3] - CAIS has launched a models marketplace to assist financial advisors in portfolio construction, marking a strategic shift towards outcome-based investment models [5][6] Private Credit Insights - Private credit managers emphasize the stability of the asset class, with low loss rates and a focus on due diligence and underwriting quality [7][9] - The average loss rate for private credit at Churchill Asset Management is reported to be five basis points per year, showcasing the sector's resilience [9] - There is a consensus among industry leaders that individual investors are seeking excellent risk-adjusted returns rather than chasing higher yields [10] Regulatory and Economic Outlook - Panelists at the conference welcomed a lighter regulatory touch from government agencies, which is expected to expand access to private markets for more investors [13] - Despite market volatility, speakers maintained a bullish outlook on the economy, focusing on business needs and consumer demands as key indicators [12] - CAIS announced expanded integrations with TAMPs and a partnership with LODAS Markets to enhance secondary trading options for private investment vehicles [13][14]