BTE Newsletter #5: The Tom Johnston Interview (and formatting changes!)

I have two updates: one exciting, and one unexciting.

First, the unexciting update: I’ve made some small formatting changes to the newsletter, which should make for easier viewing on some email clients and on dark mode. This comes thanks to one thoughtful subscriber who pointed out the flaws of my previous issues. Fixing it gives me the same relief as finally dislodging a piece of food stuck between my teeth two hours into a fancy dinner. Hopefully, the new format looks cleaner for everyone, and a big thanks to the subscriber who was honest enough to point it out.

As for the exciting update, last week I announced that interviews with leading figures from across the private markets space have begun. The first conversation was with Tom Johnston, Canadian Head at iCapital. The full interview runs about half an hour, and it is slated to be the debut episode of an upcoming podcast. For now, I have made the first part of the interview the featured post in this week’s newsletter. See below👇

Ben

📝 Posts From the Past Week

A Conversation With Tom Johnston of iCapital (Featured Post)

Published Today
Tom Johnston, who leads iCapital in Canada, joined me for a 30-minute discussion on the firm’s role as private markets become more accessible to individual investors. This is part one of our conversation.

KKR's Quest to Change the Face of Private Equity

Published Friday November 21st
Can a company once infamous for corporate greed and worker hardship become the firm redefining the industry’s reputation for good?

🗞️ 3 Stories to Watch From the Past Week

Private Assets in 401(k)s a Modest Help for Investors, Study Finds (Bloomberg)
Monday November 17th
This story explores the growing push to bring private markets into 401(k) retirement plans in the U.S., a trend gaining attention this year, and recently highlighted by an executive order. Morningstar’s new study examined 265,000 retirement accounts held by individuals aged 21 to 60, and estimated the median projected increase in annual retirement income ranged from $210 to $1,770. Of course these figures are based on modelled returns for evergreen private asset vehicles, which still have a short track record. As the paper itself notes, “Past is rarely prologue, and in this case, we don’t even have a past.”

2025 Mid-Year Market Update (Hamilton Lane)
Tuesday November 18th
Hamilton Lane puts out a lot of the best thought leadership in private markets, from its annual Market Overview to the Weekly Research Briefing by Blaine Rollins. This (humourous) article by Executive Co-Chairman Mario Giannini looks at the dark clouds currently hanging over private markets: muted asset sales, weaker distributions to investors, and a tougher fundraising environment.

Blue Owl calls off merger of its two private credit funds after announcement rattles stock (CNBC)
Wednesday November 19th
This situation can be seen as a casualty of current market sentiment. Blue Owl has executed several mergers among its private credit funds since inception, and this transaction was intended to follow suit. The plan would have combined the private $1.7 billion OBDC II fund with the $17 billion publicly traded OBDC; however, OBDC trades at a 20% discount to net asset value, which would have translated into a 20% haircut for OBDC II shareholders. The initial merger announcement thus caused significant investor concern, prompting Blue Owl to reverse course on Wednesday. Blue Owl emphasized that this move was not related to poor investment performance; OBDC II has delivered a 9.3% annual net return since inception, "meaningfully outperforming" public benchmarks.

💬 Quote of the Week

"What we have is a knowledge gap. We have in the financial press at the moment and the regulatory press we have this moment over private credit. And I always start by saying 'What is Private Credit?' and no one really knows."

Apollo CEO Marc Rowan at the Bloomberg New Economy Forum, reflecting on the recent headlines and market fears over private credit.

Want to find out more?

Private markets are not for everyone, and come with a number of risks, such as higher illiquidity and less transparency.

However, many of the world’s leading institutions and wealthiest families put a big emphasis on private markets, and recently these strategies have become more available to individuals too. Drawing on my background as an analyst specializing in private markets, I help investors cut through the complexity and understand how to build portfolios incorporating these strategies.

To explore whether these strategies are suitable for you, please schedule a 30-minute virtual meeting below:

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Disclaimer

Benjamin Sinclair is a representative of Designed Securities Ltd. Designed Securities Ltd. is regulated by the Canadian Investment Regulatory Organization (ciro.ca) and is a Member of the Canadian Investor Protection Fund (cipf.ca). Investment products are provided by Designed Securities Ltd. and include, but are not limited to, mutual funds, stocks, and bonds. Benjamin Sinclair is registered to provide advice and solutions to clients residing in the province of Ontario. For more information, please see www.beyondtheexchange.ca/disclaimer/