Apollo, Carlyle launch funds on a16z-backed Titan as PE's retail push expands

Retail investors can now place bigger bets in private markets.

Titan, the online brokerage backed by Andreessen Horowitz, said Tuesday its retail investor base can now allocate into private funds managed by alternative investment giants Apollo Global Management and the Carlyle Group.

Titan previously announced its plans to expand into the private credit and real estate markets, but had not revealed its partners in the endeavor.

The move comes amid a push from asset managers to expand retail access to private markets, as demand from individual investors grows and Wall Street powers seek to broaden their client base to Main Street.

“All of private managers’ intellectual property and funds predominantly go through large institutional checks, or if you’re a high-enough net-worth individual, through a wealth manager,” Titan co-founder and co-CEO Joe Percoco told Yahoo Finance in an interview. “This is just, push button, and you’re in, and we allocate you directly to it.”

Titan said the firm is working on introducing other new asset classes and funds from a larger lineup of investment managers in the coming months. Percoco described the experience as “hand-holding clients through a store” of investment products.

In addition to the new investment offerings, Titan is launching an added component in the existing app called the Titan Reco Engine. The update aims to give clients content to help manage their portfolios, including customized investment recommendations, suggested allocations, and the ability to connect with a human.

Titan has 55,000 clients on its app and about $750M in assets under management, the company said.

A 2021 survey from consultant EY showed 73% of asset managers believe that non-accredited investors should be able to allocate to private funds in order to achieve better portfolio diversification.

Apollo itself has also been vocal about its goals to target individual investors. The private equity giant has raised roughly $1 billion from individual investors between 2018-2020 and is targeting $15 billion annually by 2026.

“I think there is a misconception where people think these large funds actually don't wanna work with the everyday investor, but they do,” John DeYonker, Titan’s head of investor relations told Yahoo Finance.

“The average, everyday investor isn’t a GameStop trader, they are folks investing for their retirement,” DeYonker added. “This is just as exciting for the fund managers as it is for the everyday investor because we are bringing everybody together.”

The real estate fund will come from Apollo at an annual fee of 1.5%, on top of Titan’s 1% per year advisory fee on deposits of $10,000 or more on the platform, or $5 per month for deposits of less than $10,000.

The private credit option will be managed by Carlyle at a fee structure of 1% with an incentive fee added once a hurdle is reached.

Neither Apollo nor Carlyle were available for comment. Apollo Global Management is the majority owner of Yahoo Finance.

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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