News Digest: Top private equity firms eye wealth management as new growth engine
February 14, 2022
Private equity majors including KKR, Blackstone and Apollo have started building out their private wealth management units of late, after having long ignored the lucrative market for mass affluent and high-net-worth investors.
Leading alternatives investment firms are now wooing financial advisors via sophisticated sales and distribution channels, and creating product structures involving lower minimums, no drawdowns and regular liquidity windows.
The moves come as PwC projects a massive increase in private wealth assets from almost $177 trillion in 2020 to about $222 trillion by 2025, and retail investor allocations tend to typically be much stickier as compared to institutional commitments.