Keep pulling the thread on Michael Sidgmore.
Michael Sidgmore asserts that trillions of dollars from the wealth management channel are poised to enter private markets due to significant under-allocation.
Approximately 25% of Blackstone's assets under management, or about $250 billion, currently comes from the wealth channel.
Dave Layton, CEO of Partners Group, predicts the private markets industry will consolidate from over 11,000 firms to approximately 100 large platforms.
In 2024, the top six private market firms raised an average of $12 billion each from the wealth channel, while the next 19 firms (ranked 7-25) raised an average of only $1.7 billion.
The wealth channel has an average allocation of 1-3% to private markets, compared to sophisticated institutions like CalSTRS which have allocations of 20-40%.
BlackRock acquired Global Infrastructure Partners (GIP) and HPS Investment Partners, both firms with over $100 billion in AUM, for more than $12 billion each.
Charles Schwab launched an alternatives platform for its high-net-worth brokerage clients with over $5 million in net worth, and aims to have 5% of these assets allocated to private markets.
Major asset managers have varying TAM estimates for the private credit market, with Blackstone projecting a $20 trillion market, Ares a $30 trillion market, and Apollo a $40 trillion market.
A 2022 Bain & Company survey of 418 ultra-high-net-worth individuals found that when asked to name alternative asset providers, the most common answer was "I don't know," followed by Charles Schwab, Fidelity, and BlackRock.
Lincoln Financial Group has formed strategic partnerships with Bain Capital and Partners Group to invest hundreds of billions of dollars from its general account into private markets.
Approximately $250 billion, or 25%, of Blackstone's assets under management is sourced from the wealth channel.
According to data from Blue Owl, the top six private market firms raised an average of $12 billion from the wealth channel in 2024, whereas the next 19 largest firms (ranked 7-25) raised only $1.7 billion on average.