The private market wave is growing, and it appears workplace plan sponsors are increasingly eager to test the waters. According to a new report from Cerulli Associates, 37% of plan sponsors are very interested in learning more about target-date funds or managed accounts that allocate to private markets. Interest is particularly higher among large plans that hold between $250 million and $1 billion in assets, where 57% of sponsors expressed strong interest. Researchers suggested that larger plans may be f ...

All right, let's talk about this action in the private markets. Let's start off with SpaceX. The fact it's getting up to a $800 billion valuation.Clearly, there's a lot of demand for those shares. Part of the company's plan, just to be fair, is to build data centers up in space, here on land, here on Earth. We're seeing a lot of questions about the data center buildout.What's going on with that divergence. >> It's just one of the hottest private companies in the world. You're seeing SpaceX and a couple of t ...

Question-and-Answer SessionOkay. So at your recent Investor Day, you provided updated medium-term organic revenue growth targets of 7% to 9% and 50 to 75 bps of margin expansion per year. Can you talk about some of the top drivers underpinning your confidence in achieving these targets and what risks could challenge them?Martina CheungPresident, CEO & Director Well, thanks. It's great to be here. I would say we were thrilled to get out at Investor Day with our medium-term guidance shaped around our strategy ...

Tokenized stocks are gaining ground as a way for ordinary people to access investment opportunities long reserved for high net-worth individuals and other accredited investors. But while retail traders' interest in the emerging asset class is accelerating, some experts are cautioning them to pump the breaks. Tokenization refers to the process of creating a digital version of a real-world asset – for example, a stock, bond or real-estate deed – on a blockchain, or decentralized network. And as real-world ass ...

Core Insights - Charles Schwab (SCHW) announced an agreement to acquire Forge Global Holdings, Inc. (FRGE) for approximately $660 million in an all-cash transaction, resulting in a 1.7% increase in Schwab's shares [1][9] Company Overview - Forge Global, based in California, provides accredited investors with access to private markets through a direct marketplace and proprietary data, having facilitated over $17 billion in private company share trades as of September 30, 2025 [2] Acquisition Details - Schwab will pay $45 per share in cash for Forge Global, with the merger approved by both companies' boards and expected to close in the first half of 2026, pending customary conditions [3] Strategic Rationale - The acquisition aligns with Schwab's strategy to enhance private market capabilities for retail and advisor clients, leveraging its comprehensive wealth management solutions [5] - The addition of Forge Global's platform aims to capitalize on growing investor demand for early exposure to startups, enhancing portfolio diversification [6] Future Plans - Post-acquisition, Schwab plans to offer Forge Global's products to ultra-high-net-worth clients and expand access to over 1 million retail clients and registered investment advisers, with further enhancements for all qualified investors [4] Market Position - Schwab's CEO highlighted the potential for significant growth in private securities, leveraging access to 46 million client accounts and $11.6 trillion in client assets [7] - The acquisition is expected to diversify Schwab's revenue streams and drive revenue growth as transactional activity in private markets increases [7] Performance Metrics - Over the past year, Schwab's shares have increased by 22.3%, compared to a 27.2% growth in the industry [8]

Core Insights - The deal between Morgan Stanley and Equity Zen aims to enhance access to private markets for a broader range of investors, addressing the challenges of wealth creation and liquidity for employees in private companies [1][4][12] Group 1: Market Trends - Private markets are experiencing significant growth, with the average duration a company remains private increasing from five years to 14 years over the past two decades [2] - This trend presents challenges as average investors are often excluded from early-stage investments, which are primarily accessible to institutional investors and venture capitalists [3] Group 2: Strategic Rationale - The combination of Morgan Stanley's extensive client base, with $7 trillion in assets and 20 million clients, and Equity Zen's private market offerings creates a unique opportunity to connect demand and supply in the private market ecosystem [5] - The integration of these firms is expected to professionalize the private market segment, enhancing investor protections and aligning with Morgan Stanley's overall risk management framework [8][10] Group 3: Client Demand and Risk Management - There has been a substantial increase in demand for private market access, with Morgan Stanley aiming to extend these opportunities to its entire client base, including nearly one million clients from Equity Zen [12][13] - The firm emphasizes the importance of risk management, suggesting that private market investments should constitute about 10-15% of an overall portfolio, depending on individual risk profiles [11][15]

Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with Bernstein Private Wealth at a record high of $153 billion [4][5] - Adjusted earnings per unit for Q3 increased by 12% year-over-year to $0.86, with net revenues at $885 million, a 5% increase compared to the prior year [25][26] - Total performance fees decreased by $6 million to approximately $20 million [25] - Adjusted operating income rose by 15% year-over-year to $303 million, reflecting a strong margin expansion of 290 basis points [28][34] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stands at $351 billion, while the retail platform serves $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [6][7] - Private markets generated nearly $3 billion in net inflows, with strong origination for investment-grade corporate and ABS private placements [7] - Active equities experienced over $6 billion in outflows, while structured and defensive strategies attracted inflows [7][13] Market Data and Key Metrics Changes - U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 [11] - Emerging markets outperformed, while global developed equities underperformed compared to the U.S. [12] - The firm is seeing increased inquiries for international equity strategies, particularly from outside the U.S. [49] Company Strategy and Development Direction - The company is focused on expanding its third-party insurance asset management business and has partnered with Fortitude for strategic investments [8][9] - The strategic alliance with Equitable enhances the firm's client-centric asset-light approach, allowing for the scaling of higher-fee private alternative strategies [9] - The firm aims to achieve $90 to $100 billion in private markets AUM by 2027, leveraging existing investment teams and strategic partnerships [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The firm is optimistic about capturing growth opportunities in Asia, particularly in taxable fixed income [47][61] - Management acknowledges potential volatility in public markets but remains confident in the firm's ability to navigate challenges [43][62] Other Important Information - The firm has successfully expanded its private markets platform to nearly $80 billion, representing a 17% year-over-year growth [22] - The effective tax rate for the third quarter was 6%, in line with full-year guidance [28] Q&A Session Summary Question: Clarification on the insurance opportunity and Ruby Re - Management confirmed that the timing of funding for Reinsurance Group of America has not changed and is proceeding as planned [40] Question: Insights on private credit and credit quality - Management noted competitive environments in private credit but reassured that there is no broader material deterioration in credit quality [42] Question: Update on Asia business and investor reactions - The firm observed improvement in its Asia business, particularly in taxable fixed income, despite external market noise [47] Question: Clarification on capital allocation strategy and buybacks - Management indicated that the light buyback this quarter was due to timing and not related to Equitable [57] Question: Discussion on bond reallocation and performance - Management expressed confidence in benefiting from bond reallocation trends, particularly in Asia [60]

Market Fundamentals & Dynamics - Markets involve the exchange of objects, requiring two parties and two objects, with money serving as a store of value and a medium of exchange [1] - Credit allows borrowing and payment over time, while asymmetric payoff offers the potential for a large return on a small investment [1] - Market prices are determined by the varying values ascribed to an object by multiple buyers and sellers [1] - Markets can be irrational, exhibiting exuberance or being downcast, and redefine themselves by changing critical measures [1][2] - Investors can either follow market trends or discipline the market by relying on equity analysis and understanding industrial dynamics [2][3] Historical Analysis of BSE Sensex - The liberalization budget of 1991 set a positive tone for markets, leading to a bull market [5][6] - Mutual funds in the private sector gained scale starting in 1993, and the National Stock Exchange (NSE) started in 1992, promoting digital trading and cleaner accounts [8][9][10] - From 2008 to 2013/14, the market experienced sideways movement, with consumer companies becoming prominent [15][16][17] - From 2013 to pre-pandemic 2020, the market saw decent growth, with digital infrastructure established and significant venture capital-funded acquisitions occurring [18] Current Market Perspective - The current market mood is cautiously optimistic, with awareness of both good and better times [19] - Technology is transforming the market, enabling new investment opportunities, although its overall impact on market superiority is debated [20][21] - Valuations are increasingly based on price-to-sales ratios, reflecting the focus on turnover in emerging businesses [22][23] Consumer Behavior & Market Impact - The Indian consumer, particularly the emerging upper-middle class, will significantly influence the market through their consumption patterns [23] - Consumer priorities have evolved from job security and homeownership to continuous education, travel, and digital identity [24][25][26][27][28][29][30] - Loans for education and experiences are becoming more common, reflecting changing consumer values [31] Investment Principles - Market uptrends require a reason, sufficient capital, and a metric for asset valuation, such as price-to-sales or digital market potential [31] - Money chases performance, and performance chases money, highlighting the importance of salience in new ideas and the cyclical nature of investment flows [31][32]

Core Insights - BlackRock reported a significant increase in assets under management, reaching $13.46 trillion in Q3 2025, a 17% rise from $11.47 trillion in the same quarter of the previous year [1] - The firm's adjusted net income rose to $1.9 billion, reflecting an 11% increase from $1.7 billion year-over-year [1][2] - Revenue for the quarter was $6.5 billion, a 25% increase from the prior year, attributed to favorable market conditions [3] Financial Performance - Adjusted diluted earnings per share increased by 1% year-over-year to $11.55, influenced by lower nonoperating income and an uptick in diluted share count [2] - Operating income saw a 23% year-over-year rise, reaching $2.6 billion after adjustments [3] - The firm experienced a 10% annualized organic base fee growth, indicating strong performance across various segments [3] Inflows and Investments - BlackRock recorded inflows of $205 billion during the quarter, with iShares ETFs achieving record-setting performance [2] - The company repurchased $375 million worth of shares during the same period [4] - Strategic developments included the $12 billion acquisition of HPS Investment Partners, adding $165 billion in client AUM and $118 billion in fee-paying AUM [6] Strategic Initiatives - BlackRock expanded its wealth management services through an agreement with Citi to manage approximately $80 billion in wealth assets [6] - The leadership structure was strengthened with the addition of 20 new executives to its committee, aimed at propelling market value growth over a five-year horizon [7] - CEO Laurence Fink emphasized the company's focus on technology, data analytics, and a unified platform to enhance client service and performance [5]

Core Insights - The rise of private capital and VC-funded unicorns has led to a perception that public markets are becoming obsolete, with companies like Meta, Uber, and Airbnb thriving without going public [1][2] - Despite the allure of private markets, companies like Klarna have opted for IPOs, indicating that public markets still offer significant advantages [2][4] Group 1: Public vs. Private Markets - Many companies prefer private markets due to reduced scrutiny and governance requirements, leading to a decline in the number of listed companies and new IPOs in developed markets over the past two decades [3] - Public markets provide essential benefits such as discipline, credibility, and opportunities for stakeholders to realize value, making them a viable option for growth [4][5] Group 2: Market Capitalization and Misconceptions - Global public market capitalization has increased to over $90 trillion, representing about 112% of global GDP, countering the notion that public markets are dying [5] - The belief that companies must choose between short-term pressures and private market refuge is a misconception; with the right strategy, public companies can achieve superior long-term value [5] Group 3: Short-term Focus in Public Companies - Public companies often face pressure to meet quarterly targets, which can lead to increased stock price volatility; however, this focus on short-term earnings is not a necessity but rather a habit [6]