All right, the debate over whether public companies should issue quarterly results is back. This topic reignited by a recent truth social post from President Trump, who says that a change to reporting to every six months instead of every three months would let managers better focus on running their businesses. The SEC says that it will prioritize the president's proposal, which he first pushed during his first term back in 2018.The topic was addressed in an op-ed around that same time by Warren Buffett and ...

Group 1 - Goldman Sachs plans to invest up to $1 billion in T. Rowe Price stock to acquire up to 3.5% of shares, aiming to enhance access to private markets for clients [1][2] - The partnership will provide wealth and retirement products, including target-date strategies, model portfolios, and multi-asset products, specifically designed for mass affluent and high-net-worth clients [2][3] - The collaboration reflects a trend among asset managers to tap into the growing demand for private market investments among retail investors, particularly in light of regulatory changes that facilitate access to alternatives [3][4] Group 2 - The demand for private assets is increasing among retail investors, with alternatives being seen as suitable for 401(k) accounts due to their long time horizons and tax advantages [4] - Other notable partnerships in the industry include Blackstone, Vanguard, and Wellington launching an interval fund, and Capital Group and KKR creating public-private credit funds targeting retail investors [5]

Group 1 - Retirement investors shifted their savings from equities to fixed-income options, indicating a cautious investment mood in August [1][2] - Trading activity in retirement accounts was notably low, with no above-normal trading days, and investors moved from US equity funds to conservative bonds and money market funds [2][3] - There is a growing demand for private equity and private debt investments among retirement savers, with nearly half expressing interest if available in their plans [4][5] Group 2 - Recent executive orders aim to facilitate the inclusion of private assets in workplace retirement plans, aligning with fiduciary requirements [6] - A significant number of plan sponsors are considering adding alternative assets to their offerings, reflecting a potential shift in investment strategies [8] - Goldman Sachs is investing up to $1 billion in T. Rowe Price to enable access to private assets for US retirees by mid-2026 [8]

In Going Private, our newsletter about private markets, we look at The Weeknd's plans to raise $1 billion through a music rights deal. https://t.co/8yPem3DOdh ...

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Private Equity Market Trends - Private equity firms face concerns about selling previous investments at good prices due to liquidity issues [1][2] - Public markets are trading at all-time highs, but private markets are not seeing the same success, partly due to timing and high purchase prices [2] - Prices of companies typically bought by private equity firms have deflated significantly, with trading multiples decreasing from 17-20x to 7-8x [3][4] - Lower asset prices create opportunities for fund managers to buy at attractive prices, but also make it harder to get liquidity [6] Alternative Investments in Retirement - Deploying capital is easier than realizing capital gains in the current market [7] - The US 401k market, a primary savings tool for Americans, has been largely locked out of private market investments [8] - Inclusion of private markets in 401ks requires regulatory changes [8][9] - Diversification through private markets is essential for a better retirement portfolio, especially given the concentration in public markets [10] Portfolio Construction and Risk Management - Pensions have driven returns through private markets [13] - A portfolio construction strategy involving heavier weighting in private markets for younger savers, gradually shifting to more liquid assets over time, is suggested [14][15] - Illiquidity of alternative investments is a concern, especially during market downturns, but can be managed through appropriate portfolio construction [11][12][14]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $38 million or $0.49 per share for Q1 2026 [5] - Fee-related earnings were $81 million, up 13% from the prior year quarter, with an FRE margin of 38% [5][18] - Adjusted net income for the quarter was $48.5 million or $0.40 per share, down from $57.2 million or $0.48 per share in the same quarter last year [6][21] Business Line Data and Key Metrics Changes - Total gross AUM additions were $8.7 billion, driven by strong inflows in managed accounts and balanced contributions across commingled funds [8] - The company generated nearly $9 billion of gross additions during the quarter, including $6.5 billion from managed accounts [12] - Fee earning AUM increased by $6 billion, with undeployed fee earning capital growing to nearly $29 billion [14] Market Data and Key Metrics Changes - The company experienced strong fundraising momentum despite a volatile market backdrop [7] - Private wealth subscriptions exceeded $1 billion for the quarter, with a quick recovery from market volatility [8] - The company noted strong performance in Australia, the Middle East, and Asia for fundraising activities [60] Company Strategy and Development Direction - The company announced a framework agreement with FTSE Russell to develop private asset indices, aiming to enhance transparency and benchmarking capabilities in private markets [9][10] - The partnership is expected to lead to modest near-term earnings contributions, with long-term potential for asset management offerings referencing these indices [10][11] - The company is focused on expanding its private wealth platform and has increased its distribution partners to over 550 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of capital market conditions and a healthy pipeline of investment opportunities [7] - The company anticipates stronger performance fees in the second fiscal quarter, supported by improving capital market trends [9] - Management acknowledged the competitive landscape in the credit market but remains confident in their differentiated multi-manager platform [34] Other Important Information - The company raised its quarterly dividend by 17% from $0.24 to $0.28 per share, reflecting strong growth in fee-related earnings [15] - Adjusted cash-based compensation increased to $96 million, reflecting annual merit increases and headcount growth [18] Q&A Session Summary Question: Can you elaborate on the index opportunity with FTSE Russell? - Management highlighted the launch of a series of indices tracking private markets, with initial revenue expected from licensing fees [25][26] Question: What is the appetite for venture and growth products? - Management noted strong demand for their Spring product, attributing success to their established reputation in the wealth channel [31][32] Question: How much does the private wealth franchise contribute to profitability? - Management indicated that private wealth represents nearly 8% of total fee earning AUM and is expected to scale and contribute more to the bottom line [40] Question: What are the expectations for capital markets activity? - Management expects a recovery in activity levels but noted that sellers are maintaining discipline in valuations [66]

Interest Rate Expectations and Fed Policy - The market anticipates a September rate cut with approximately a 65% probability [5] - The Fed's potential rate cut is linked to successfully navigating tariff impacts and observing inflation reports [3][6][7] - Current interest rates at 45% (implied 45%) are considered above restrictive in real terms (approximately 2%), suggesting a potential need for a rate cut [3] - The Fed is expected to provide clarity on the conditions (what), timing (when), and reasons (why) for potential rate cuts, particularly concerning tariff impacts [5][6] - Market implied inflation expectations are rangebound and consumer inflation expectations have decreased from previous highs of 6% to 7%, potentially giving the Fed leeway to cut rates if these trends continue [7][8] Market Conditions and Investment Strategy - Short-term market exuberance is noted, with the market up 30% from April lows, leading to high valuations and overbought conditions in public markets [9] - Near-term, the current moment may not be the ideal buying opportunity, but long-term investors should consider earnings growth, margins, and valuations [10] - Private markets are exhibiting meaningfully lower valuations, higher margins, and higher earnings growth compared to public markets [11] Impact of Rate Cuts and Capital Markets - A rate cut would be welcomed, especially for private market participants, as rates have already decreased by about 1% [4] - Constructive capital markets are likely to drive an uptick in M&A activity, which has already rebounded in June [12]

Bloomberg Markets editor @patregnier tells @sonalibasak why some economists are worried about private markets and their potential effect on the US economy.Watch the full episode of Bullish on the Bloomberg app https://t.co/oSp6OsKcPV https://t.co/22z29IDdhg ...

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