Concord, Calif.-based AssetMark, a turnkey asset management platform and technology provider, is adding capabilities to support the inclusion of private market assets. The functionality, which it expects to roll out in the fourth quarter, will allow advisors to invest in vetted semi-liquid private funds in a single custody account alongside other public security allocations.
The program will provide managed portfolios that allocate and rebalance across public and private markets. The private assets will be integrated into AssetMark’s technology. And the firm is adding education and tools aimed at advisors.
Private assets will be supported as a sleeve in discretionary accounts or UMAs on AssetMark’s platform. By having public and private assets in a single custodial account, advisors will be able to produce single reports for clients with all assets. It will also allow for rebalancing over time.
According to David McNatt, AssetMark executive vice president and chief wealth solutions and strategy officer, the firm is attempting to serve advisors by helping with investment construction and technology to support forays into private markets.
“We have been working on this for quite a bit of time because we think it’s incredibly important for advisors to be successful,” McNatt said. “We have to help them with investment construction and the tech side. We have a conviction that private assets represent a core allocation in many investor portfolios that could be 10%, 15% or 20%. It can improve investor outcomes in terms of return and income.”
AssetMark did not identify specific asset managers or funds that will be available. However, the firm said it is conducting due diligence on funds covering private credit, private real estate and private equity. Out of the gate, AssetMark will focus on interval funds and include strategies from a handful of general partners, but eventually will expand to include tender-offer funds, non-traded BDCs and non-traded REITs.
According to McNatt, AssetMark is focused on “having quality solutions with each solution having an intent and purpose and a role to play in a client’s portfolio. We want to make sure it’s comprehensive, provides choice and is curated.”
“Private markets are no longer optional—they’re essential to building modern, diversified portfolios,” Lou Maiuri, group CEO and chairman of AssetMark, said in a statement. “We’re committed to helping advisors access these opportunities in a way that’s intuitive, scalable and aligned with how they serve clients today.”
In a recent episode of The WealthStack Podcast, Michael Kim, president and CEO of AssetMark, sat down with Shannon Rosic to discuss how technology, education and private equity access are converging to redefine portfolio construction.
The firm, which went private in 2024, last year also acquired Morningstar Wealth’s TAMP assets. This transaction brought approximately $12 billion of assets to the platform.
AssetMark’s platform serves over 10,700 financial advisors and over 317,000 investor households. As of December 31, 2024, AssetMark had over $139 billion in platform assets.
Earlier this week, Fitch Ratings affirmed GTCR Everest Borrower’s (dba AssetMark) Long-Term Issuer Default Rating (IDR) at ‘B+’ with a rating outlook of “stable.” However, Fitch also downgraded the company’s upsized first lien term loan and revolving credit facility to ‘BB-’ with a Recovery Rating of ‘RR3’ from ‘BB’/‘RR2.’ Fitch cited AssetMark’s planned $450 million upsizing of the first lien term loan and increase in its revolving credit facility to $306.25 million as reasons for the downgrade.
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