Money Maze Podcast 175: "The Consultant’s Edge" - Are Investment Consultants Indispensable? With Michael Manning, CEO of NEPC
May 22, 2025
Michael Manning, CEO of NEPC, leads an investment consulting firm with nearly $2 trillion under advice. He discusses the evolution of investment consulting, detailing its shift from serving institutional clients to engaging individual investors. Michael analyzes the investment landscape, including the debate between active and passive strategies, and potential risks in private equity and private debt. He emphasizes the importance of diversification, adaptive approaches, and the changing dynamics of public and private equity markets.
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Private Equity's Future Expectations
- Private equity returns are expected to moderate from historical highs due to more competition and market conditions.
- Effective active ownership in private equity can still provide a 3-4% premium over public equities.
Public Markets' Role for Private Equity
- Public markets remain crucial as exit routes and valuation benchmarks for private equity.
- Increasingly, some private equity investors consider longer-term holdings outside quarterly earnings pressures.
Opportunity in Private Debt Growth
- Private debt complements reduced bank lending, offering capital solutions during stress.
- Private debt portfolios can provide favorable risk-adjusted returns by navigating complex credit situations.
