Episode summary
Going Public Ep. 4: Unpacking the past few months in private markets with Evercore's Glenn Schorr
Alt Goes Mainstream
· · Hosts: Michael Sidgmore · Guests: Glenn Schorr
Summary
Glenn Schorr said the past few months in private markets have been defined by a rebound in confidence after a tariff-driven April slowdown. He argued that fundraising, deployment and capital markets activity were better than expected in the second quarter, and that animal spirits feel more real now because the M&A and IPO backdrop has improved and the exit pipeline looks the strongest since before the rate hikes. He emphasized that the optimism is broad-based across large alternative managers and investment banks, even if private equity and private real estate have been slower to recover than other parts of private markets.
He stressed that private markets is much bigger than private equity. In his view, private credit, infrastructure, secondaries, asset-backed finance and the wealth channel have all been major growth engines, while scale and permanence of capital increasingly separate the strongest firms from the rest. He highlighted perpetual capital, insurance balancesheets, and long-duration funding as major advantages because they better match long-lived assets and support investing through cycles.
Schorr also argued that the wealth channel is becoming a major distribution opportunity, but it requires education, servicing and product design. He expects semi-liquid products, BDCs, evergreen funds and model portfolios to expand access, while performance will remain the ultimate arbiter of fees and fundraising.
Key takeaways
- Schorr said the exit pipeline feels "the best that they've felt since pre-rate hike," driven by improving M&A and IPO conditions.
- He argued that private markets growth is increasingly coming from private credit, infrastructure, secondaries and asset-backed finance, not just private equity.
- Schorr said perpetual capital is a structural advantage because it lets managers invest through cycles and match long-duration liabilities with long-duration assets.
- He said the wealth channel is a major growth market, but winning it requires heavy servicing, education and platform approval.
- Schorr thinks performance will ultimately determine fees and fundraising, even as scale and distribution help the biggest managers protect pricing.
Notable quotes
“the exit pipeline seems the best that they've felt since pre- rate hike”
“private credit has has been excellent until this year”
“The more perpetual capital, the better”
“performance is going to be the ultimate arbiter of everything in asset management”
“there's $140 trillion or so in institutional money with big anywhere from 20 to 50% allocations to private markets”
How the episode opens
I'll give you a a 3, two, one, go. And then you can go. All right.
All right. Three. Mhm.
I remember for the intro that came. Three, two, one, go. Everybody gets a piece.
We're going mainream. Everybody's going to eat. We're going mainream.
All my family sing. See you on Main Street. We're going mainream from Wall Street to Melrose Avenue.
We're going mainream venture capitalists to athletes to leaders to the person who has collected trading cards. We're going to collision of culture and finance. We're going.
Welcome to the alt goes mainstream going public series with Glen Shore. In this special series, we aim to make private markets more public. We take a deep dive into the public side of the alternative asset management industry.
Our guide, Glenn Shore, is a well-known Wall Street analyst who has covered alternative asset managers since the first firms in the industry have gone public. Glenn is a senior managing director and senior research analyst at Evercore ISI. Glenn has covered the financial sector since 2000 as a senior analyst and has consistently been named to institutional investors allameric research team for his coverage of brokers, asset managers, and exchanges and large cap banks.
Most recently ranking number two and runnerup respectively in the sectors in 2023 and number one and number two in 2022. 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 also will go around the horn for his analysis on each of the publicly traded firms. Couldn't ask for anyone better to take us on this journey.
Glenn and I hope you enjoy. Finance. We're back at Going Public.
What's been going on?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private markets
- private equity exits
- private credit expansion
- wealth channel growth
- fee structures
Companies and tickers mentioned
- EVR
- Evercore
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alt Goes Mainstream, this episode and its artwork belong to Michael Sidgmore. Octagon is not affiliated with the show; this page is an independent summary.
