Core Insights - President Trump's executive order has highlighted the growth of private markets, including private equity, credit, real estate, and infrastructure, and its intersection with the wealth-management industry [1] Group 1: Growth of Wealth Management and Private Assets - Global assets under management (AUM) in the wealth market reached $159 trillion in 2024, growing by 20% over the previous five years [2] - AUM held by general partners (GPs) in private assets is projected to increase from $18.7 trillion in 2024 to $24.1 trillion by the end of 2029 [2] - The growth of wealth management and private assets has been driven by different factors but has meaningful overlaps [2] Group 2: Wealth Managers' Interest in Private Credit - Wealth managers are increasingly attracted to private credit for portfolio diversification within fixed income and potential premiums over traditional fixed income [4] - Private credit has historically shown low correlation with stocks and bonds, making it appealing during periods of rising inflation or interest rates [4] - The floating-rate structure of private-credit funds supports hedging strategies [4] Group 3: Customization and Accessibility - Wealth managers need to deliver highly personalized portfolios, and private credit allows for significant customization around investment goals and borrowing terms [5] - New private investment vehicles can enhance accessibility and liquidity for clients [5] Group 4: Need for Transparency - Wealth managers acknowledge that the private-credit revolution requires higher transparency from GPs regarding liquidity and risk [6] - In the 2025 MSCI General Partner Survey, 57% of small GPs reported issues with data accuracy and credibility, while 94% of all GPs recognized the importance of portfolio-management solutions [6]