Private Wealth Race Opens New Frontier for Alt Managers

In Brief:

Peter Aliprantis, Partner and Head of Private Wealth Americas at EQT, discusses the rapidly evolving private wealth channel for alternative investments in this Alt Goes Mainstream podcast. Having joined EQT in October 2024 after 12 years at TPG Angelo Gordon, Aliprantis brings 25+ years of experience to the wealth management space. He identifies a fundamental shift where private wealth, once an afterthought for alternative asset managers, has become central to growth strategies. Aliprantis warns firms without significant wealth channel presence within 3-5 years will struggle to catch up as competition for shelf space intensifies and product innovation accelerates.

Big Picture Drivers:

• Market Evolution: Private wealth has transformed from a niche add-on to a critical growth driver for alternative asset managers

• Brand Building: European firms like EQT face challenges establishing brand recognition in the US wealth market

• Product Innovation: Evergreen fund structures are increasingly displacing traditional drawdown funds

• Channel Complexity: The wealth channel requires segmented approaches across wirehouses, RIAs, and family offices

Key Insights:

• Relationship Timeline: Research shows it takes 2-2.5 years to close business with RIAs versus quicker timelines with wirehouses

• Institutional Crossover: Smaller institutions increasingly adopt wealth-focused evergreen products

• Model Portfolios: Future growth will come from packaged alternatives solutions across asset classes

• Firm Scale: Large firms with multiple strategies have advantages in securing distribution partnerships

• Education Strategy: Content must be tailored to advisor experience level and channel segment

• Performance Plus: While investment performance remains "table stakes," service quality and operational excellence increasingly differentiate managers

• Global Advantage: Firms with multinational presence can leverage broader investment universes to maintain performance as fund sizes grow

By The Numbers:

• 3-5 Years: Window for firms to establish significant wealth channel presence before market solidifies

• 12 Salespeople: EQT's current US sales force, up from 4-5 when Aliprantis joined four months ago

• 5 Products: EQT's target for wealth-specific evergreen products by end of 2025, up from current 3

• 100 Professionals: Global headcount dedicated to EQT's private wealth business

Memorable Quotes:

• "I was in the private wealth business before it was exciting to be in the private wealth business." - Aliprantis reflecting on his early entry into what has become a highly competitive space

• "The race is on and it's gonna be a sprint to the finish. It's very, very competitive." - Aliprantis on the urgency for firms to establish wealth channel presence

• "We went from being a little bit on an island over here that was more exclusive to being more mainstream." - Aliprantis describing alternative investments' journey from niche to normalized

• "Advisors want to view you as a source of advice, not a source of product push." - Aliprantis on effective wealth channel relationship-building

• "Sometimes being the new kid on the block is an advantage, not a disadvantage." - Aliprantis on EQT's opportunity to differentiate as a European firm entering the US wealth market

The Wrap: 

As private markets continue mainstreaming into wealth portfolios, successful managers must develop tailored products, robust distribution networks, and educational content that addresses specific advisor segments. EQT exemplifies this strategic shift, leveraging its global expertise while building US brand presence. The next few years will likely determine which alternative managers secure lasting positions in wealth channels, potentially reshaping how private market assets are accessed and allocated across investor types.