Private market growth boosts AllianceBernstein finals
The growth of its private markets platform helped boost AllianceBernstein’s assets under management (AUM) and revenue last year.
The asset manager’s private markets platform saw its AUM grow by nine per cent last year, to reach $61bn (£48.32bn), representing 8.4 per cent of the company’s overall business.
By 31 December 2023, AllianceBernstein had assets under management of $725.2bn, a rise of 12 per cent from 31 December 2022.
Net revenues increased by 10.2 per cent during the fourth quarter of the year and by 2.5 per cent for the full year, driven by higher investment advisory base fees and investment gains.
Read more: Apollo “well on track” with $50bn wealth market push
Seth P. Bernstein, president and chief executive of AllianceBernstein, said that the company’s year-end institutional pipeline of $12bn maintains a highly accretive fee rate, approximately three times the channel average, with private alternatives representing more than 80 per cent of the fee base.
The growth of the private markets business offset lower demand in the equities space, added Bernstein.
“By asset class, lower active equities demand was mostly offset as municipals grew organically by 11 per cent, with strong demand from US retail, and taxable fixed income grew organically by three per cent driven by cross-border demand,” he said.
Read more: Mezzanine debt set to grow in 2024
“Our private markets platform expanded its offerings, with total AUM of $61bn, up nine per cent.
“Entering 2024, we maintain a balanced perspective in managing our business. While we enter 2024 with an AUM base 12 per cent above the prior year period, we anticipate markets will continue to reflect a volatile macroeconomic and geopolitical environment.”
AllianceBernstein’s US retail business grew organically for the fifth consecutive year and private wealth grew for the third straight year.
Read more: KKR sees growth in credit in fourth quarter