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On this page

1. The Evolution & Secular Shift of Private Markets

  • 1. The Evolution & Secular Shift of Private Markets
  • 2. Real Estate: Cyclical Bottoming & Secular Tailwinds
  • 3. The Sports, Media, and Entertainment Ecosystem

On this page

  • 1. The Evolution & Secular Shift of Private Markets
  • 2. Real Estate: Cyclical Bottoming & Secular Tailwinds
  • 3. The Sports, Media, and Entertainment Ecosystem
PE/VC/April 18, 2026/3 min read/youtu.be

Beyond the Game: Value Creation in Alternatives | Morgan Stanley

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In this episode of the Alts Report,** Mike Arougheti**, CEO and founder of Ares Management, discusses the significant shift toward alternative investments, the current state of the real estate market, and the burgeoning ecosystem of sports, media, and entertainment.


1. The Evolution & Secular Shift of Private Markets

The shift toward alternatives is not merely a trend but a 30-year secular movement of private markets capturing share from public markets [00:01:33].

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Published
April 18, 2026
Read time
3 min read
Progress0%
  • Market Projection: The individual investor market for alternatives is expected to hit $30 trillion by 2030 [00:00:55].
  • Public Market Constraints: Public markets currently suffer from structural constraints, including a lack of flexibility and a failure to accommodate smaller companies, forcing issuers into private markets where they stay private longer [00:01:47].
  • Credit Market Concentration: In traded credit markets, the average issuer size is expanding, meaning these markets now only accommodate the largest entities, further driving others toward private credit [00:02:22].
  • Access Pillars: Access is being unlocked by the convergence of Structure, Education, and Technology [00:03:04].
  • Liquidity: Modern product structures offer monthly/quarterly liquidity. While not intended for active trading, this provides a path for personal needs or portfolio reconstruction [00:03:25].

2. Real Estate: Cyclical Bottoming & Secular Tailwinds

The real estate entry point is currently "very well set up" due to a combination of price corrections and supply-demand imbalances [00:04:05].

  • Price Correction: Excluding the office sector, real estate values have bottomed out after drawing down 18% to 20% [00:04:21].
  • Historical Returns: Historically, entering at this bottoming phase yields approximately 400 basis points of incremental return on the index [00:04:42].
  • Supply Gaps: There is a significant underbuild in "major food groups," specifically multifamily and industrial real estate [00:04:14].
  • Secular Demand Drivers: * Global Supply Chains: The reorganization of supply chains—specifically reshoring, nearshoring, and "friend-shoring"—is driving industrial demand [00:05:08].
    • Digital Infrastructure: Rapid proliferation of data centers built off the industrial backbone [00:05:25].
    • Demographics & Affordability: Aging populations and housing affordability challenges are establishing the rental market as a permanent, viable alternative to ownership [00:05:40].

3. The Sports, Media, and Entertainment Ecosystem

Investors often focus solely on team equity, but the investable sports ecosystem is roughly 5x larger than the $3 trillion teams and leagues market [00:06:07].

  • Investment Perimeter: Beyond franchises, opportunities exist in sports equipment, ticketing platforms, in-stadium hospitality, stadium real estate, advertising, talent agencies, and youth sports [00:06:41].
  • College Sports: Mike Arougheti notes that college sports is now officially investable [00:07:03].
  • Value Core: Teams and leagues remain the center of value because they own the IP, brand, and unscripted content that drives "sticky" customer bases [00:07:20].
  • Media Rights Shift: Growth is underpinned by the transition from wired cable to Over-The-Top (OTT) and streaming, which is increasing the value and length of global media deals [00:08:03].
  • Experience Economy: Consumer behavior is shifting spending away from physical goods toward live events (sports and concerts) [00:08:36].
  • Store of Value: Sports assets are achieving a 10% to 15% compound annual growth (CAGR) [00:08:47]. They are increasingly viewed as "stores of value" detached from revenue, similar to gold, silver, or crypto [00:09:10].

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