Private markets can withstand geopolitical shocks and individual investors want to benefit from this, just as institutional ones do, according to Blue Owl Capital Inc.’s James Clarke.
The alternative assets industry is democratizing to allow individuals to take part in a full suite of investments, the firm’s global head of institutional capital said in an interview on Bloomberg TV on Tuesday.
The availability of capital to private markets continues to grow, with large institutional investors only increasing their exposure to alternatives, he said. For private market players, building scale is more important than ever, he added.
“Scale is our friend,” he said. “To do the kinds of investments we want to do, we need scale.”
Clarke stressed a focus on non-cyclical sectors is key for Blue Owl. As such financing the defense sector is not a priority for his firm, despite governments’ growing willingness to spend in that area.
His comments come a day after the firm announced a partnership with Voya Financial that will help individual investors access private market strategies via retirement plans.
The partnership follows similar strategies by a group of private markets players, including Apollo Global Management Inc. and Franklin Templeton. Last month BlackRock Inc. announced its intention to tap retirement savings accounts.
Blue Owl manages over $273 billion in assets, according to its website.
Written by: Dani Burger and Francesca Veronesi @Bloomberg
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