Welcome back to Going Public with Evercore’s Glenn Schorr.
On the latest episode of Going Public, we drop the beat on F.R.E.A.M.
Paying homage to Wu-Tang Clan’s song “C.R.E.A.M.” (“Cash rules everything around me”), Glenn discusses why “Fees rule everything around me” in asset management.
We cover some of the most pressing topics in alternative asset management, including:
How alternative asset managers balance fee generation with returns.
Does major growth still lie ahead for alternative asset managers?
Why “fees rule everything around me,” but so does alpha generation.
Why does distribution (almost always) win in asset management?
What’s the most valuable aspect of a publicly traded alts manager having a public currency?
What is Glenn keeping his eye on for next quarter?
Making private markets more public — with expert analysis
Alt Goes Mainstream has partnered with an expert who has seen the evolution of alternative asset managers from their early days.
Glenn Schorr is a Senior MD and Senior Research Analyst at Evercore ISI, where he covers brokers, banks, asset managers, and trust banks as an analyst.
He has covered financials since 2000 and started coverage of alternative asset managers when the first firms went public.
He’s consistently come up as one of the most thoughtful and well-respected analysts in the space. He balances deep research with a creative flair (just read one of the titles of his research reports and you can see his love of the game). He’s been named to Institutional Investor’s All-America Research Team for his coverage, most recently ranking #2 and runner up in 2023, #1 and #2 in 2022. Prior to Evercore, Glenn was a Senior MD at Nomura, serving as the lead financials analyst.
Listen in as Glenn shares market stories, the evolution of alternative asset managers as businesses, the biggest and most exciting trends in private markets based on what the industry’s largest players are doing, and we go “around the horn” for his analysis on the publicly traded firms.
Clip #1: F.R.E.A.M. (Fees rule everything around me).
Clip #2: Don’t mistake cyclicality for the structural growth ahead in private markets.
Clip #3: Distribution rules the world … and Sheryl does too.
Clip #4: What are you looking for next quarter?
Show Notes
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
Disclosures
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