AGM Alts Weekly | 11.30.25: Asset management and wealth management - betting on each other
AGM Alts Weekly #131: Making private markets more public, every week.
“Alt Goes Mainstream is category of one.” Global Head of Marketing & Communications, $X00B AUM alternative asset manager.
“When it comes to the intersection of alternative investments and wealth management, Michael just gets it.” CIO, $18B AUM RIA.
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Good morning from Washington, D.C.
PwC released a report this week that could help to explain some of the strategic moves being made by both asset management and wealth management firms.
There’s a paradox, they say. A profitability paradox.
Even as the asset and wealth management industries are likely to see an increase in AUM, growing from $139T in 2025 to $200T by 2030, according to PwC, profit as a share of AUM looks set to continue its decline.
A chart from PwC illustrates this trend line: the asset and wealth management industry now earns less for every dollar managed — and profit per AUM (US$M per US$1B of AUM) is projected to decrease from 1.18 in 2024 to 1.07 in 2030 (this figure is down from 1.46 in 2018 and 1.68 in 2021).
So, if mutual fund and ETF fees have been on a secular decline for years, as the below chart from Bain & Company’s 2025 Global Private Equity Report highlights, where will the asset management industry’s growth come from?
PwC’s report suggests that the growth will come from “alternatives.”
The chart above from PwC’s report illustrates that AUM growth in alternatives will outpace both mutual funds and mandates.
Even in a 2030 “low” projection, alternatives AUM is projected to grow at a CAGR that outstrips the CAGRs of both mutual funds and mandates. In the 2030 “low” projection, PwC expects alternatives AUM to grow at a 6.9% CAGR, besting the 3.8% CAGR for mutual funds over the same period.
Private markets’ AUM growth should translate to top line growth for asset managers. PwC projects that private markets will represent more than half of the asset and wealth management industry revenues by 2030, as the below chart indicates.
Pressure from compression
Amidst a world of compression, both asset managers and financial advisors are looking to private markets for expansion.
To grow their respective businesses, asset and wealth managers are turning to private markets.
PwC’s facts and figures back up why traditional asset managers like BlackRock see private markets as a centerpiece of the future state — and perhaps even the present state — of their business, as Chairman and CEO Larry Fink noted in his Annual Chairman’s Letter to Investors earlier this year.
Fink made clear — in no uncertain terms — that BlackRock is no longer just a traditional asset manager:
BlackRock has always had a foot in private markets. But we’ve been—first and foremost—a traditional asset manager. That’s who we were at the start of 2024. But it’s not who we are anymore.
Fink and BlackRock have seen the data on the secular decline in mutual fund and ETF fees, so yes, there is a business imperative to transform the firm into a private markets powerhouse.
But BlackRock is also very likely seeing client demand from the wealth channel to provide private markets offerings to investors.
Good for business?
Survey data bears out that some financial advisors see private markets as a tool to both help construct better client portfolios and to differentiate their business from competitors.
Hamilton Lane’s 2025 Annual Global Private Wealth Survey finds that many advisors are looking to private markets as a way to deepen relationships with current clients, respond to demand from current clients, and attract new clients.
Anecdotally, a number of recent conversations with advisors have supported this survey data.
Advisors are leveraging private markets as a way to grow their client pipelines and win new client business.
iCapital’s 2025 Global Advisor Survey found that advisors surveyed are turning to private markets to access sophisticated / unique investments and to attract new clients.
A September 2025 survey by AssetMark of 400 financial advisors affirmed a similar sentiment from advisors.
AssetMark found that 91% of advisors surveyed said access to private markets is critical for differentiation.
And here’s the kicker: Among advisors not currently offering private markets to clients, 68% plan to add them within the next year. And, 59% of that group would consider switching firms to gain access, particularly if those advisors have higher levels of AUM and serve wealthier clients.
AssetMark’s CEO Michael Kim highlighted that advisors are looking to private markets for differentiation: “Advisors are signaling that private markets are no longer an optional service—they’re a strategic necessity.”
In a world where attracting new clients is the highest priority for advisors, differentiation becomes critical.
Nuveen’s recent study with Arizent Research and Financial Planning found that attracting new clients is the top challenge for advisors.
Nearly half of the advisors (46%) surveyed by Nuveen incidated that attracting new clients is their “most significant” challenge. Furthermore, 76% of the advisor respondents noted that attracting high-net-worth clients is a “critical or high-priority” demographic for their business.
Perhaps private markets will be part of the solution for advisors. A recent Brookfield Oaktree Wealth Solutions survey from their Alts Institute found that over 70% of non-users said they would begin investing in alternatives if their advisor recommended it.
Looking out over the horizon
If a bet on the wealth management industry is, in some respects, a bet that’s correlated to the S&P 500 or the MSCI World, then perhaps another reason why some advisors are turning to private markets is because it provides both their practice and their clients with an avenue for diversification — and the possibility of enhanced returns over extended time horizons.
A chart from KKR highlights that the returns from various asset classes in private markets per unit of risk has differentiated private markets from its public markets counterparts in the S&P 500 and Global Agg Index between 2012 and 2022.
Permira takes this notion a step further. In a July 2025 insights piece on private equity, they posit that the illiquidity and long-term time horizon of the investment helps to drive its outperformance relative to public markets.
Permira suggests that “committed capital” affords private equity managers with the ability to “apply a flexible, long-term mindset” and “invest to optimize for long-term growth, and then choose the right time to buy and sell.”
The gap between public and private markets performance diverges on a net MOIC basis the longer the time horizon is extended.
Permira also dissects public versus private equity performance on 10-year rolling annualized time-weighted returns. Private equity outperformed public markets in 97 of the last 100 quarters, based on MSCI’s Private Equity Index benchmarked to the Russell 3000 Index.
The volatility question
Private markets are far from perfect. There are a number of factors that make performance in private markets — and outperformance relative to public markets — difficult to achieve.
And there are reasonable arguments that detractors of private markets will make which question the volatility — or lack thereof — of private markets due to the infrequency of marks, as AQR’s Cliff Asness has shared with his perspectives on “volatility laundering.”
Volatility is a topic where investors have differing perspectives.
Oaktree’s Co-Founder and Co-Chairman Howard Marks addressed the subject of volatility in a recent October 2025 Memo, “A Look Under the Hood.”
In future memos, I’m likely to harp on my view that investors pay too much attention to volatility. It’s absolutely essential for investors to think about limiting their risk, but I don’t think volatility is the risk they should be most concerned with. Regardless, much of the investing community has accepted volatility as the best indicator of risk – primarily, I think, because it’s the only way to come up with a number for risk – and that has led to excessive attention being paid to it.
I’ll make a controversial statement here: in pure investment terms, there’s no intrinsic reason for long-term investors to be concerned with volatility (as distinguished from the risk of permanent loss). Warren Buffett famously says he’d “rather earn a lumpy 15% return than a smooth 12%.” Why wouldn’t everyone?
But, if the question is one of returns (and investors must be able to handle duration and illiquidity to effectively navigate private markets), over long time horizons, private markets have tended to outperform public markets.
A chart from an October 2025 whitepaper by HarbourVest highlights that private equity has tended to generate higher compounded returns over 5, 10, and 15 years with lower downside risk compared to public equity.
Investing becomes even more challenging in a new investing regime.
A new world order of investing
It’s quite possible that a new world order in investing is here.
This notion is one that Apollo CEO Marc Rowan has been discussing for a few years, and a topic that he expanded on at the Norges Bank Investment Management Investment Conference in April 2024.
KKR has also drawn up playcalls for the new game on the field in their Q3 2025 Global Wealth Investment Playbook.
In this new investing regime, in which they characterize higher inflation volatility and higher rates as a feature of this new world, KKR anticipates that the dispersion of expected returns will narrow.
KKR’s thesis?
A “flatter efficient frontier (i.e. flatter returns) drives greater need to incorporate asset classes that enhance portfolio diversification.”
Betting on each other
If diversification will feature in this new world order of investing, then both wealth managers and asset managers might have no alternative other than to be equipped to have exposure as businesses beyond public equities and public fixed income.
As private markets moves into the mainstream with asset management, the success of the asset management and wealth management industries become even more inextricably linked.
Asset managers and wealth managers are betting on each other for future growth, which makes it even more important for them to get private markets right … for the sake of their clients and for the sake of their respective businesses.
AGM Index
AGM has created an Index to track the leading publicly traded alternative asset managers.
Some of the industry’s largest alternative asset managers are publicly traded — and their net inflows can serve as a window into how private markets are being perceived by investors and allocators who are allocating capital into alternative investments.
Note: AUM figures are based on fee-paying AUM where applicable.
Who is hiring?
In order for alts to continue to go mainstream, we need the best talent to go into the space. Here are some openings at private markets firms. If you’d like to connect with any of these teams, let me know, and I’m happy to facilitate an introduction if appropriate. If you’re a company or fund in private markets, feel free to reach out to share a job description you’d like to be listed here to highlight for the Alt Goes Mainstream community.
🔍 Blackstone (Alternative asset manager) - Blackstone Private Wealth - Product Specialist, Vice President (Real Assets). Click here to learn more.
🔍 KKR (Alternative asset manager) - Head of AI Product Management. Click here to learn more.
🔍 Apollo Global Management (Alternative asset manager) - Market Intelligence Director. Click here to learn more.
🔍 Ares (Alternative asset manager) - Vice President, Product Management & Client Services, Wealth Management Solutions, APAC. Click here to learn more.
🔍 Blue Owl (Alternative asset manager) - Market Leader, Private Wealth, Senior Associate. Click here to learn more.
🔍 Franklin Templeton (Asset manager) - Portfolio Manager, Private Markets. Click here to learn more.
🔍 iCapital (Private markets infrastructure investment platform) - Private Markets, Due Diligence Manager - Senior Vice President. Click here to learn more.
🔍 Goldman Sachs Alternatives (Alternative asset manager) - Asset and Wealth Management, Client Solutions Group, Retail Alternatives Specialist, New York - Vice President. Click here to learn more.
🔍 Partners Group (Alternative asset manager) - Investment Leader, Private Equity, Services vertical. Click here to learn more.
🔍 Ultimus Fund Solutions (Fund administrator) - SVP, Business Development. Click here to learn more.
🔍 Allocate (Private markets infrastructure investment platform) - Managing Director / Senior Director, Investments & Research. Click here to learn more.
🔍 Dynasty Financial Partners (Wealth management platform) - Senior Product Manager - Wealth Technology. Click here to learn more.
🔍 MSCI (Data services) - Product Marketing Specialist - Private Asset GPs. Click here to learn more.
🤝 Interested in partnering with Alt Goes Mainstream? 🤝
Alt Goes Mainstream is a community of engaged experts and executives in private markets.
Fill out this form using the link below to explore partnership opportunities.
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Special thanks to Ryan McCormack, Nick Owens, and Michael Rutter for their contributions to the AGM Index section of the newsletter.

















Love this!