When Asset Classes Converge, Leadership Clarity Becomes the Hedge
When Asset Classes Converge, Leadership Clarity Becomes the Hedge
Public and private markets used to feel like different worlds.
Today, they often rhyme.
McKinsey’s research on asset management convergence shows how similar many strategies have quietly become. Public equity, private credit, infrastructure, alternative strategies, and hybrids.
On paper, it can still look diversified.
In reality, the risks often overlap significantly.
Different wrappers, increasingly similar underlying bets.
That’s where leadership distinguishes itself as an important factor in returns and risk.
The managers I trust most in this environment are RUTHLESS about clarity:
➤ They identify the real drivers of returns. They don’t just rely on the label on the product.
➤ They stress test how macro factors affect portfolio exposures.
➤ They explain, in plain English, where portfolio exposures are correlated to the same risks.
Weak leaders hide behind product labels.
Strong ones map the stack and own the correlations.
For family offices, UHNW, and HNW investors, that honesty is risk management.
Where do you see “diversification” on paper that’s really just convergence in disguise?
🔗Source: Asset Management 2025: The Great Convergence
