Moody’s has warned that as retail money flows to private markets, liquidity risks will grow and there will be more vulnerability in the system.
In addition to targeting high net worth individuals, alternative asset managers are increasingly looking for ways to broaden their distribution to more retail clients, particularly through retirement plans or other discretionary portfolios.
That has resulted in a number of partnerships between players, including Apollo and State Street, which have launched a public-private credit ETF, and KKR and Capital Group, which launched two public-private investment funds.