Welcome back to another episode of "Going Public" with Glenn Schorr from Evercore. In our latest installment, we dive into the concept of F.R.E.A.M.
Inspired by Wu-Tang Clan’s iconic track "C.R.E.A.M." (Cash Rules Everything Around Me), Glenn delves into his version: "Fees Rule Everything Around Me" within the realm of asset management.
If you’re keen to listen, you can find us on Apple Podcasts, Spotify, or Transistor.
During our discussion, we touch on several critical issues in alternative asset management, tackling questions such as how these managers juggle generating fees with securing returns. We also explore whether significant growth still beckons in this sector and the dual dominance of fees and alpha generation. Additionally, we discuss the often overlooked but powerful role of distribution in asset management and the strategic advantage of having a public currency for publicly traded alternative managers. To wrap it up, we find out what Glenn is watching closely for the next quarter.
Our series, "Alt Goes Mainstream," has partnered with a true industry veteran who’s witnessed the evolution of alternative asset managers. Glenn Schorr, a Senior MD and Senior Research Analyst at Evercore ISI, brings his insights to the table, covering brokers, banks, asset managers, and trust banks. Having ventured into financials reporting since 2000 and focusing on alternative asset managers from their public beginnings, he’s garnered much respect in his field. His analytical work is renowned for its depth and creative touches, earning accolades including spots on Institutional Investor’s All-America Research Team.
Join us as Glenn recounts market stories, chronicles the transformation of alternative asset managers, and highlights the most thrilling trends in private markets. Our discussion spans several intriguing clips: fees’ undeniable influence, the structural growth anticipated in private markets, and the reigning power of distribution (with a nod to Sheryl). You won’t want to miss Glenn’s forecast for the upcoming quarter either.
Here’s a sneak peek at what’s covered:
- 00:00 Introduction
- 00:38 Meet Glenn Schorr
- 01:52 Wu-Tang Clan and Asset Management
- 02:40 F.R.E.A.M.: Fees Rule Everything Around Me
- 02:49 Public Investors and Revenue Streams
- 03:47 Balancing Fee Growth and Investment Returns
- 05:50 Talent Migration and Fee Justification
- 06:38 Migration to Private Markets
- 07:07 Deregulation and Its Impact
- 09:31 Structural Challenges for Banks
- 09:58 Growth in Alternative Asset Management
- 12:19 Wealth Channel and Private Markets
- 13:13 Private Equity Performance
- 15:37 Education Process for Investors
- 16:27 Perpetual Private Equity Products
- 17:35 Model Portfolios: The Next Frontier
- 21:00 Distribution and Asset Management
- 24:24 Corporate Strategy and Partnerships in Asset Management
- 27:10 Public vs. Private Firms
- 29:56 Acquisitions and Growth Strategies
- 31:09 Specialty Managers and Market Trends
- 33:12 Big TAMs and Investment Opportunities
- 36:15 Consolidation in the Industry
- 38:16 Surprises and Trends in the Quarter
- 39:44 Deployment and Investment Grade Private Credit
- 40:03 Credit Cycles and Market Concerns
- 41:15 Data Centers and AI Investments
- 41:54 Size and Scale in Asset Management
- 45:19 Bank and Asset Manager Partnerships
- 46:15 Looking Ahead: Thoughts on the Next Quarter
- 47:10 Conclusion and Final Thoughts
Thanks for joining us, and stay tuned for more engaging discussions on the future of finance and asset management!
