Invest Where Private Market Growth Begins
June 05, 2025
Read Time 3 MIN
What was once the domain of institutions has been opening up to everyday investors, as private equity, credit, real estate, and infrastructure become more accessible. Alternative asset managers, the firms that source, analyze, and allocate to these markets, are expanding beyond pensions and endowments and pushing into wealth management and even retirement accounts. As this shift accelerates, new opportunities are emerging for investors to tap into this rapidly growing space.
Forces Powering the Rise of Alternative Asset Managers
Private assets under management have ballooned at a rapid pace as institutional investors have sought uncorrelated exposure and attractive yield in their long-term portfolio mix. These alternative asset managers advise larger pools of capital, often captive assets with long-term lockups. Their push into new channels such as wealth management and retirement are helping to fuel this growth and also open doors to potential future growth.
Global Alternative Assets Under Management as of 6/30/2024
Source: HFR, Preqin, J.P. Morgan Asset Management. Assets under management is defined as managed assets in private closed-end funds, which includes the latest available valuation of investments (including unrealized value), as well as committed capital available for investment by fund managers. 2024 figures are as of June 30, 2024, the latest data available.
A Spotlight on Private Credit
Private credit has been a recent standout within private markets. As traditional lenders pull back, alternative managers have stepped in to fill the void, offering customized lending solutions to businesses of all sizes. This trend has shown no signs of slowing.
Global Private Credit AUM ($ trillions) / Projections as of January 2025
Source: Preqin, Moody’s Ratings. Moody’s estimate uses Preqin's historical private debt fund AUM figures, which are not inclusive of all private credit AUM. Data does not include asset-based financing, real estate and infrastructure PC assets, assets in non-fund structures and leverage on these funds. Past or projected data does not guarantee future results and is for illustrative purposes only.
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Why Companies Are Staying Private Longer
Meanwhile, more companies are choosing to stay private longer. The number of publicly listed companies in the U.S. has dropped since the late 1990s, even as market capitalizations have risen. A concentrated group of mega-cap tech names now dominates public markets, leaving many high-growth companies in private hands.
This shift has elevated the role of alternative asset managers as gatekeepers to some of the most dynamic segments of the economy.
Median Age of VC-Backed Companies (Years)
Source: PitchBook. Past performance is no guarantee of future results.
IPOs Rare Among Recent VC Exits / Share of Total Value in 2024
Source: Fortune, Theory Ventures, PitchBook, Goldman Sachs. Past performance is no guarantee of future results.
The Advantage of Captive Capital
One of the more compelling aspects of alternative asset managers is their access to long-term capital. Unlike traditional managers who rely on daily liquidity structures like mutual funds or ETFs, these firms typically operate investment vehicles with multi-year lockups or limited liquidity.
These include:
- Private funds (LPs, SPVs, etc.)
- Separately managed accounts
- Semi-liquid vehicles (interval funds, tender offer funds, BDCs, and REITs)
These structures allow managers to take a long-term view, supporting more stable fee revenues and enabling them to navigate economic cycles.
A Full Spectrum of Private Market Opportunity
Investing in publicly traded alternative asset managers offers exposure across the entire private markets spectrum.
Private Markets Spectrum
| Private Equity / Venture Capital | Private Credit | Private Infrastructure | Private Real Estate |
| Investment in private companies or buyouts of public companies, with goal of increasing value before exiting through a sale or IPO; or exposure to early-stage companies with the goal of outsized returns if a company is successful. | Non-bank lending to companies, often in the form of direct loans. Offers investors attractive yields and borrowers customized financing unavailable through traditional lenders. | Long-term investments in physical assets like transportation, energy, utilities, and digital infrastructure. These assets often provide stable, inflation-linked cash flows. | Direct investment in commercial or residential property, often through private funds. Focuses on income from rents and capital appreciation from asset management and development. |
How to Invest in Private Market Managers
The VanEck Alternative Asset Manager ETF (GPZ) offers investors targeted exposure to major companies across the private markets spectrum. Holdings include leading firms like Blackstone, Apollo, and KKR, among other major players in private equity, credit, real estate, infrastructure, and venture capital. GPZ is designed to track the performance of the MarketVector Alternative Asset Managers Index, an ultra pure-play index focused on firms whose core business is managing and growing private capital.
Private markets are transforming global capital flows, and alternative asset managers are at the center of that evolution. With GPZ, investors can now gain exposure to this momentum through a liquid and transparent ETF.
Learn how GPZ can help you access this fast-growing area of the market.
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Important Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
Holdings will vary for the VanEck Alternative Asset Manager ETF (GPZ) and its corresponding Index. For a complete list of holdings in the ETF, please click here: GPZ Holdings.
An investment in the Fund may be subject to risks which include, among others, risks related to investing in alternative asset managers, issuer-specific changes, financials sector, equity securities, small-, medium and large-capitalization companies, depositary receipts, special risk considerations of investing in Canadian and European issuers, foreign securities, foreign currency, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified and index-related concentration risks, all of which may adversely affect the Fund. Investing in listed alternative asset managers may be speculative and involve substantial risks, including leverage, liquidity, significant volatility, operational complexity, valuation, limited public information, and the risk of borrower default or bankruptcy. Small, medium and large-capitalization companies may be subject to elevated risks.
MarketVector Alternative Asset Managers Index is the exclusive property of MarketVector Indexes GmbH (a wholly owned subsidiary of Van Eck Securities Corporation), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards MarketVector Indexes GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. The VanEck Alternative Asset Manager ETF is not sponsored, endorsed, sold or promoted by MarketVector Indexes GmbH and MarketVector Indexes GmbH makes no representation regarding the advisability of investing in the Fund.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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Important Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
Holdings will vary for the VanEck Alternative Asset Manager ETF (GPZ) and its corresponding Index. For a complete list of holdings in the ETF, please click here: GPZ Holdings.
An investment in the Fund may be subject to risks which include, among others, risks related to investing in alternative asset managers, issuer-specific changes, financials sector, equity securities, small-, medium and large-capitalization companies, depositary receipts, special risk considerations of investing in Canadian and European issuers, foreign securities, foreign currency, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified and index-related concentration risks, all of which may adversely affect the Fund. Investing in listed alternative asset managers may be speculative and involve substantial risks, including leverage, liquidity, significant volatility, operational complexity, valuation, limited public information, and the risk of borrower default or bankruptcy. Small, medium and large-capitalization companies may be subject to elevated risks.
MarketVector Alternative Asset Managers Index is the exclusive property of MarketVector Indexes GmbH (a wholly owned subsidiary of Van Eck Securities Corporation), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards MarketVector Indexes GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. The VanEck Alternative Asset Manager ETF is not sponsored, endorsed, sold or promoted by MarketVector Indexes GmbH and MarketVector Indexes GmbH makes no representation regarding the advisability of investing in the Fund.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.