00:00This is a really interesting one, these partnerships that Sotera is forming.
00:04It feels like partnerships have been the avenue that a lot of these firms are pursuing lately.
00:09It's the latest in a series of partnerships that we've seen.
00:12This is pretty important because Sotera has access to 12,000 advisors on its platform or around that number.
00:19We've seen Blackstone partnering with Vanguard, State Street with Apollo.
00:23It's a proliferating trend, which seems to be here to stay.
00:27But we don't really have a sense yet of how these funds are going to work, how much they're going to charge, or if advisors are ultimately going to take them on to their clients.
00:37That's the thing because you have seen a private credit ETF launch from State Street.
00:43It hasn't seen a ton in terms of demand.
00:45But you ask these issuers why they're partnering up, why they're launching these products.
00:49They tell you that there's demand from retail investors.
00:52But I have to imagine that these private market firms also want to tap into a new source of capital.
01:00I think it's more of a distribution play.
01:02And right now, the sense is there's more supply than demand.
01:06But I think they're positioning for when, you know, this education happened and everyone wants to jump on these products.
01:11It's definitely a brand new market happening up for them of like many, many trillions that they want to tap.
01:17Well, let's talk a little bit more about that.
01:19Give us some context on just how big this push to put privates in retail hands actually is.
01:25I think you just think that Vanguard that only does active equity and fixed income index funds and, you know, some active listed securities funds is partnering with Blackstone for a product that will bring private equity and private credit to retail investors.
01:42And I think from that you can understand that even if it's reached Vanguard, it's everywhere now.
01:48So there is not a single person that you can talk to in asset management today that will not say that this trend is here to stay and that they're talking with people and looking into creating some products that they would reach either 401ks or retail investors.
02:02And maybe I'm the only person on earth who finds this interesting, but it does stick out to me that a lot of these partnerships are culminating in interval fund launches rather than ETF and those sorts of wrappers, for example.
02:14Yeah, I think it's a more tested avenue.
02:19Multi-asset funds are also seeing kind of some traction in terms of Empower did a bunch of multi-asset funds for 401ks.
02:27There is now Satira with Blackstone, Apollo, Blue Owl, and all these other asset managers.
02:32The only ETF that I'm aware of is the State Street one, which hasn't done amazingly well so far.
02:38And I don't know if this is creating second thoughts for people, but I think they're trying a more tested structure that they've already used in, you know, in-house, the big P guys.
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