Private equity taps on individual wealth management

Thur, 09/12/2024

by Ellie LeTu

Source: WSJ

• Private equity looks for wealthy individuals

  • Private equity funds charge higher management fees compared to public market investments.

  • Growth with institutional investors like pension and sovereign wealth funds has plateaued.

  • PE firms seek new investment source: wealthy individual investors.

• Model portfolio by BlackRock and Partners Group

  • BlackRock, a U.S. public investment firm, and Partners Group, a Swiss private equity firm, have partnered to create a model portfolio.

  • The goal is to simplify private equity investments for wealthy individuals with little or no prior exposure to the private market.

  • This expands beyond private products from firms like Blackstone, Apollo Global Management, and KKR.

• Market excitement

  • BlackRock has acquired private market investment firms to increase its private market presence.

  • Partners Group's stock rose 5.4%, driven by excitement about its U.S. expansion.

  • The model portfolio aims to reach 30,000 wealth advisors under BlackRock.