Consolidation Trends - The asset management industry may experience a wave of consolidation due to pressure on the middle ground from the rise of ETFs, private markets, and AI spending [2] - The winner-takes-most dynamic seen in tech industries is extending to asset management, further driving consolidation [3] Private Markets Growth - There has been a 40% increase in semi-liquid funds, primarily aimed at wealthy individuals for private markets [3] - Private markets are considered one of the most exciting opportunities in asset management, particularly for wealthy individuals [4] - Bringing private markets into the 401k market is a potential long-term opportunity [4] High Net Worth Market - The growing number of wealthier individuals provides a secular tailwind for the private market [5] - Specialist credit vehicles are of significant interest, with traditional firms seeking to acquire access to specialist credit managers [6] - Partnerships are forming to offer private market ingredients to a more democratized level of clients [6] Evergreen Funds Performance - Large private market firms raised approximately 10% of their funds from wealthy individuals in the first half of last year, which has increased to 16.67% this year (1 in 6) [7] - Semi-liquid funds are identified as the single fastest-growing area within the asset management industry [7]

One other big topic uh that's come up just this week and maybe even more broadly has been and we've discussed the idea of of making private investments more accessible to the public investor class. Robin Hood uh announced plans uh to create a fund effectively that would buy shares in private institutions that then public investors, retail investors would be able to access. And I'm curious what you think about that.It'll ultimately need your approval. >> Yeah. Well, I salute again the president issued an exe ...

Interest Rate Environment & Economic Outlook - The company believes higher interest rates are likely to persist for an extended period [3][6] - The company's portfolio companies are experiencing double-digit growth, indicating a sound and solid economy [5] - The company expresses confidence in the Fed's ability to navigate the rate environment [6] - The company views current market volatility and concerns about Fed independence as "noise," emphasizing the underlying strength of the economy [7][8][12] Private Markets & Retirement Plans - The company acknowledges a generational shift towards increased accessibility of private investments, including potential inclusion in 401(k) plans [2][13][14] - The company advocates for a cautious approach to expanding private investment access, emphasizing the importance of walking before running [14] - The company highlights the historical outperformance of private lending compared to liquid alternatives [16] - The company stresses the need for robust disclosure and regulation in private markets to mitigate risks such as fraud [17] - The company cautions against a potential flood of retail capital into private equity, which could create opportunities for existing firms to exit less desirable investments at the expense of retail investors [22][23] - The company suggests starting with lower volatility, safer private investment options like private credit and real assets, emphasizing a prudent and well-regulated approach [23][24]

Private Investment in 401k Plans - Industry experts believe including private investments in target date or target risk funds is beneficial for retail investors [2] - Concerns arise when private investments are offered on a standalone basis due to complexity [2][3] - Target date funds alleviate the need for individual consumers to perform due diligence on complex private investments [5] Due Diligence and Risk - Allocating a small portion, such as 5% to 20%, of target date funds to private investments may be appropriate [4] - Taking due diligence responsibilities away from consumers comes at a cost, making expenses a significant factor [5] - Advisors and employers, acting as fiduciaries, bear the responsibility of ensuring funds are priced appropriately [7] Fund Selection and Evaluation - Evaluating funds involves assessing traditional fixed income and large-cap equity funds, both domestic and international [6] - It's crucial to understand liquidity risk and how it may play out in a particular fund [7]