Key Takeaways
- • Tema ETFs launched the Tema Alternative Asset Managers ETF (AAUM), the first actively managed U.S.-listed ETF exclusively focused on publicly traded asset managers operating across private equity, private credit, private infrastructure, venture capital, and private real estate.
- • Alternative assets under management have surged from approximately $7.4 trillion in 2014 to close to $19 trillion by end of 2024, creating a substantially expanded universe of listed asset managers available for equity investment.
- • AAUM provides investors an alternative to traditional limited partner investments in private markets funds, offering greater liquidity, flexibility, and potential alignment through direct equity exposure to General Partner asset managers rather than fund vehicles.
- • Kaimon Chung, the portfolio manager with over 20 years of alternative asset management expertise and former top-ranked alternative asset managers analyst at Evercore under Glenn Schorr, leads the fund with an active management approach designed to identify winning private markets franchises, given historically divergent outcomes between listed managers.
- • The fund is non-diversified, invests at least 80% of net assets in its mandate, and carries a 0.75% expense ratio, holding 30 positions across the alternative asset manager universe.
Summary
Tema ETFs, a New York-based provider of innovative exchange-traded funds, announced the launch of the Tema Alternative Asset Managers ETF (AAUM), marking the first actively managed U.S.-listed ETF designed specifically to provide exposure to publicly traded asset managers across the private markets universe. The fund targets the growing cohort of managers operating in private equity, private credit, private infrastructure, venture capital, and private real estate—asset classes that have attracted increasing institutional and wealth management capital over the past decade.
The launch reflects substantial structural growth in the alternative assets industry. Total alternative assets under management have expanded dramatically from approximately $7.4 trillion in 2014 to nearly $19 trillion as of the end of 2024, according to the fund prospectus. This growth has been accompanied by an expanding universe of publicly listed alternative asset managers, creating a new investment opportunity set for equity investors seeking exposure to private markets without the traditional constraints of limited partner commitments.
The AAUM structure offers institutional investors and wealth managers a differentiated approach to private markets exposure. Rather than committing capital as limited partners into specific alternative asset funds, investors can purchase equity stakes in the listed General Partner asset managers themselves. This approach potentially provides greater liquidity, enhanced flexibility, and improved alignment of interests throughout market cycles, according to Kaimon Chung, the fund's portfolio manager. Chung brings over 20 years of specialized expertise in alternative asset managers, having previously served as Wall Street's top-ranked alternative asset managers analyst at Evercore under Glenn Schorr.
The fund employs active management given the historically divergent performance outcomes between listed alternative asset managers. Kaimon's thesis emphasizes that quality exposure requires expertise to risk-manage and identify the franchises positioned to capture value creation across the private markets landscape. The fund is structured as non-diversified, investing at least 80% of net assets in its mandate, and holds 30 positions. The expense ratio is set at 0.75%, positioning the fund competitively within the actively managed ETF space.
The launch reflects substantial structural growth in the alternative assets industry. Total alternative assets under management have expanded dramatically from approximately $7.4 trillion in 2014 to nearly $19 trillion as of the end of 2024, according to the fund prospectus. This growth has been accompanied by an expanding universe of publicly listed alternative asset managers, creating a new investment opportunity set for equity investors seeking exposure to private markets without the traditional constraints of limited partner commitments.
The AAUM structure offers institutional investors and wealth managers a differentiated approach to private markets exposure. Rather than committing capital as limited partners into specific alternative asset funds, investors can purchase equity stakes in the listed General Partner asset managers themselves. This approach potentially provides greater liquidity, enhanced flexibility, and improved alignment of interests throughout market cycles, according to Kaimon Chung, the fund's portfolio manager. Chung brings over 20 years of specialized expertise in alternative asset managers, having previously served as Wall Street's top-ranked alternative asset managers analyst at Evercore under Glenn Schorr.
The fund employs active management given the historically divergent performance outcomes between listed alternative asset managers. Kaimon's thesis emphasizes that quality exposure requires expertise to risk-manage and identify the franchises positioned to capture value creation across the private markets landscape. The fund is structured as non-diversified, investing at least 80% of net assets in its mandate, and holds 30 positions. The expense ratio is set at 0.75%, positioning the fund competitively within the actively managed ETF space.
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