Alternative investment firms are kicking into high gear their efforts to attract retail dollars as they look to diversify into new, and less demanding, sources of capital.
The managers are expanding their offerings — adding master limited partnerships, real estate investment trusts, business development companies and special purpose acquisition companies — to meet the growing demand from retail investors, in the U.S. and elsewhere, eagerly diversifying into alternative asset classes to boost returns.
Among the most recent moves:
- On Aug. 13, TPG Capital LP filed with the Securities and Exchange Commission to create a special purpose acquisition company that aims to raise up to $460 million for an unidentified buyout. The SPAC is called Pace Holdings Corp.
- On Aug. 6, Apollo Global Management agreed to buy AR Capital, the troubled retail real estate empire of Nicholas Schorsch, as Apollo moves to diversify its investor base.
- In July, Ares Management LP bought energy manager Kayne Anderson Capital Advisors LP for $2.55 billion to further expand its offerings for retail investors.
Pressured by institutional investors to lower fees and offer more limited partner-friendly terms, and by the Securities and Exchange Commission for greater transparency and removal of conflicts of interests, less-fussy retail money is looking especially attractive to alternative investment managers.