John Phinney’s Post

I agree that the magnitude of the opportunity is huge, but: 1) Blackstone's #BXPE does nothing to #democratize #privateequity #PE, since its only available to #qualifiedpurchasers; and 2) As an evergreen, fully paid fund, BXPE is (IMO) not the best structure for investors of that accreditation level. Yes, as a one-stop, buy and forget investment, without capital calls, it is more convenient for advisors, but (unlike traditional #QP drawdown funds) it introduces cash drag and dilution and deprives the advisor and their QP investors of the ability to emphasize or de-emphasize vintages and/or choose other managers over time. 3) BXPE offers LESS LIQUIDITY than a dozen or more registered PE funds available to less wealthy #accreditedinvestors and (in some cases) #unaccreditedinvestors. IMO, there are better evergreen approaches that an advisor can apply in appropriate size to their entire client base across accreditation levels, and then supplement with specific products to meet the needs of more sophisticated QP clients. #privatemarkets

There is no longer a question of "if", but only as to the sheer magnitude of the opportunity alternative investment fund managers have to continue to grow in the wealth management marketplace. There is no shortage of demand amongst retail investors and the product innovation will certainly keep pace. The big winner / winners will be the firms who not only create the most innovative products or that generate superior returns (not always do these go hand in hand) but the firms who prioritize education and best inform their prospective clients about the unique opportunities and associated risks with investing in these asset classes! https://lnkd.in/gX5A6qT9

While both Blackstone and BlackRock have made significant impacts in the financial world, it's important to note that superiority can be subjective and depends on the criteria you're considering. Here's a balanced view: Blackstone is often seen as superior in the realm of private equity and alternative investments. They have a strong reputation for successfully navigating complex and high-return investments, making them a powerhouse in this space. The firm's founders, Stephen Schwarzman and Peter Peterson, are credited with steering Blackstone to become a leader in the private equity world. On the other hand, BlackRock's strength lies in its massive scale and dominance in asset management. Larry Fink and his team have built BlackRock into the world's largest investment management firm, with trillions of dollars in assets under management. Their focus on providing a wide range of investment products, including exchange-traded funds (ETFs), has contributed to their broad appeal and success. So, while Blackstone excels in private equity, BlackRock's superiority lies in its expansive reach and diverse offerings. Each firm has its own strengths and areas of expertise, making them leaders in different aspects of the financial services industry. Ultimately, superiority depends on what specific qualities or services you value most in a financial firm. #professionaldevelopment #professionalgrowth #growth #knowledgesharing #economy #finance #money #assetmanagement #assetallocation

Two major events are shaking up the asset-management world. Blackstone Inc raised $1.3 billion for its first retail private equity fund, targeting those who have at least $5 million to invest. Separately, BlackRock Inc is buying Global Infrastructure Partners for $12.5 billion, a major foray into alternative investments. The acquisition will make it the second-largest manager of private infrastructure assets. After blowing past major milestones — the pair now manages over $1 trillion and $10 trillion, respectively — Blackstone and BlackRock need to show investors they still have a good story to tell. The two deals showcase just that. https://lnkd.in/dbE32xGW

According to a recent Bloomberg article, major players Blackstone and BlackRock are making big moves to diversify their businesses amid market uncertainty. Blackstone recently launched a $1.3 billion retail private equity fund, eyeing individual investors with at least $5 million to allocate. Meanwhile, BlackRock is venturing further into alternatives with its $12.5 billion acquisition of Global Infrastructure Partners. These strategic pivots highlight a broader industry shift toward fee-based revenue streams over volatile performance-based earnings. With valuations rewarding predictable management fees, asset managers are catering more to high-net-worth individuals and institutions seeking stable returns. For Blackstone and BlackRock, the focus is building resilient, diversified businesses that can weather unpredictable markets. Their push into private markets and alternatives underscores the demand for consistency over outsized performance gains. As markets grow more turbulent, major players seem to be repositioning themselves for steadier, long-term growth. What other steps are asset managers taking to future-proof their businesses? How might individual investors take advantage of this shift? #AssetManagement #Blackstone #Blackrock #Alternatives #PrivateEquity For the latest insights and trends in the private wealth arena, make sure to subscribe to FINTRX's weekly newsletter below! https://lnkd.in/eWMHiUjX https://lnkd.in/e4bvHRPp

Thanks to Barry Fricke at Goldman Sachs Asset Management, Raphael Drescher at Quintet Private Bank, James Lowe, CFA at Schroders and Oliver Clark at Allfunds for joining our panel discussion at the inaugural Investment Week Private Markets Summit. We discussed how wealth firms in the UK are just at the start of a "multi-year transition period" as they begin to build their private market operations, requiring support from asset managers and platforms to provide education, as well as address their operational challenges. We covered a number of areas including product innovation, the launch of LTAFs, addressing liquidity concerns and tailoring approaches to different client segments. Their comments are well worth a read if you are interested in the development of private markets in the wealth space. #privatemarkets #wealthmanagement #fundmanagement

With growing interest in #privatemarkets from UK private wealth managers and their clients, it was great to join this recent IW Private Markets Summit Panel to discuss Schroders Capital’s thoughts on product innovation, regulation and what we are seeing on the ground in terms of private markets programme implementation for UK private clients. #schroders #privatemarkets #privatewealth

Very well researched article by Shuli Ren, Kudos! They say "Lemons ripen early, pearls take longer.” - A Venture Capital proverb Behind the giant brand names, its philanthropy, DEI, ESG, etc. Practices followed in running the Business and its strategies are also very important, because it unveils "practice what you preach". This article talks about the current scenario in Alternative investment world where Institutional Investors/SWFs have already felt stuck, and big firms are looking out for new investors so its the time for Mini-millionaires. How it unfolds time will tell. Here is some excerpts from the article:- "Institutional investors are fed up by private equity firms that continue to ask for more money, with few exits in sight. Some sovereign wealth funds and state pension providers have told the managers that they want their money back before committing to upcoming raises. Recently, a few are creating so-called evergreen funds. They are more difficult to manage, but allow investors to redeem more easily. Seen in this light, Blackstone’s dash for mini-millionaires is a no-brainer. They are easy cash cows. The wealthy that Blackstone’s retail PE fund is targeting have only 11 percent to 13 percent of their assets invested in alternatives, versus 26 percent to 28 percent for endowment funds."

In the current market, as investors only seem to have eyes for a handful of mega-caps and most of the performance is concentrated in just a few names, small caps, on the other hand, offer vast diversification opportunities. Smaller stocks enable investors to gain exposure to attractive trends via ‘pure players’ whose fundamental qualities - entrepreneurial management and nimble execution - are largely beneficial to long-term investing. Discover the interview with Caroline Gauthier, Co-Head of Equity and Benjamin Rousseau, European Equity portfolio manager - Edmond de Rothschild Asset Management. #SmallCaps #EdRConvictions

Private equity funds are facing a massive backlog on exits, according to a new report from Bain & Company Publicly listed #REITs are trading at a 15% discount to their consensus #NAVs, based on S&P Global Market Intelligence data. These are among the #investment must reads we found this week for wealth advisors.