Private wealth channels are seeing a significant influx of alternative investment managers (alt IMs), which is boosting long-term growth in assets under management (AUM), according to Fitch Ratings. Including retail-focused products may reduce the stability of alt IM fees, while increasing liquidity considerations due to redemption terms.
As the private wealth channel quickly expands to more than $10 trillion and growing, the sector is an attractive market opportunity for alt IMs. However, increasing volatility in markets and the fear of a recession may keep some investors at bay.
Alt IMs with strong brand recognition and product diversity are expected to capitalize the strongest. For example, Blackstone was the first alt IM to launch products targeting the private wealth channel, says Fitch Ratings. Firms are increasingly releasing private wealth products.
Evergreen structures provide liquidity through quarterly tenders, says the report, which could cause the f
