Keep pulling the thread on Kipp deVeer.
Around 2020-2021, Blackstone held a dominant market share of approximately 60-65% in the private wealth alternatives channel.
The private wealth alternatives market is now led by four or five firms, including Blackstone and Ares Management, which collectively hold 30% to 40% of the market share.
Of Ares Management's approximately $500 billion in AUM, $40 billion comes from its private wealth channel.
Many large alternative asset management firms similar to Ares expect that 40% of their future capital raising will originate from the private wealth channel.
Ares Management forecasts that approximately 20% of its new capital in 2025 will come from retail flows via the private wealth channel.
Ares Management currently has approximately $500 billion in Assets Under Management (AUM).
Ares Management recently closed its acquisition of GCP to expand its focus into digital infrastructure.
The acquisition of GCP provided Ares Management with hundreds of employees in the Japanese real estate business, enabling its entry into that market.
Ares Management acquired a company named Black Creek during the COVID-19 pandemic period to build its wealth management business.
The current head of Ares Management's wealth management business is Raj Donda, who was previously the CEO of Black Creek and formerly worked at Morgan Stanley.
Following the Black Creek acquisition, Ares Management's wealth management division rapidly expanded its global team from 75 to 150 people.
Financial advisors became hesitant to allocate as much as 60% of their clients' alternative investments to Blackstone, creating demand for diversification among other managers.