Private Equity Firms Look to Private Wealth to Fill the Gap

Posted on 11/02/2022

Increasingly, private equity firms such as KKR, Apollo Global Management, and Baar-Zug, Switzerland-based Partners Group Holding AG are looking to family offices and private wealth to fill the fundraising gap. For example, Partners Group formed a new business unit to target individual investors versus targeting private banks. This unit at Partners Group will be led by Robert Collins and Christian Wicklein. Collins will focus on the Americas regions, while Wicklein will focus on Europe and the Asia-Pacific region. Partners Group Private Wealth claims to have US$ 37 billion in assets under management and has offered bespoke solutions to individual investors since 2001. In total, Partners Group oversees US$ 131 billion in AUM. In 2009, Partners Group created the first 40-Act private equity fund in the United States and currently it’s the largest of its kind with more than US$ 12 billion in client assets. In 2015, Partners Group launched the first private market solutions for Defined Contribution (DC) schemes in the U.S., the U.K., and Australia, a set of bespoke solutions catering to the daily liquidity and pricing requirements of this nascent market. In 2017, Partners Group launched the first private equity European Long Term Investment Fund (ELTIF) accessible by individual investors. In 2020, Partners Group partnered with a Singaporean fintech platform to offer a tokenized commitment to one its private equity mutual funds, allowing for a significantly lower minimum investment requirement.

KKR and Carlyle Group have made efforts to court wealthy investors in China and across Asia. A number of wealthy Chinese family offices are trying to diversify away from Asian stocks and real estate.

Apollo Global Management has a global wealth platform called Apollo Aligned Alternatives, which at the second quarter of 2022 had around US$ 15 billion invested. On March 1, 2022, Apollo Global Management acquired Griffin Capital’s wealth distribution business.
As part of its continued Global Wealth expansion, Apollo had hired Dan Flynn as Head of Institutional RIA and Joe Moran as a Managing Director for Institutional RIA.

Hamilton Lane
In late October 2022, Hamilton Lane and Figure Technologies, Inc. disclosed plans to launch three new share classes of Hamilton Lane’s private markets-focused fund registered under the Investment Company Act of 1940 that digitize the fund share ownership record on the Provenance Blockchain using Figure’s Digital Fund Services platform.

Keywords: Partners Group AG, Apollo Management LP.

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