Samuel Brannan is an unlikely investment icon.
He owned a general store in Sutter's Mill and became California's wealthiest resident and first millionaire by selling shovels, pickaxes and other mining supplies to prospectors during the California Gold Rush in the 1850s.
The “pickaxes and shovels” investing strategy is, in part, attributable to his enormous success.
We highlight his strategy as a new gold rush has been transpiring for the past several years – a multi-trillion-dollar opportunity to broaden private markets access beyond institutions and high-net worth individuals. And the large, publicly listed alternative asset managers (among many others) have targeted the retail wealth channel as their source of growth with products that simplify and broaden access for retail investors.
Not unlike Mr. Brannan, the alternative asset managers appear to be significant beneficiaries of this gold rush as the stock returns of all three of the largest alternative asset managers – Apollo Global Management, Blackstone and KKR – have significantly outperformed private equity since initial public offering (IPO).*
For those investors possessing appropriate risk and liquidity tolerances, directly investing in private market funds may provide favorable risk-adjusted returns and enhance investment outcomes.
And for those who think more like Samuel Brannan, perhaps investing in private market’s pickaxes and shovels can provide more attractive wealth opportunities than the funds themselves.
Important Disclosures & Definitions
Pitchbook Private Equity Index: compiled from private equity investors and limited partners, measures the quarterly net asset value change of the private equity funds in the Pitchbook universe, considering both contributions and distributions during the period.
S&P 500 Index: widely regarded as the best single gauge of large-cap US equities. The Index includes 500 leading companies and covers approximately 80% of available market capitalization.
One may not invest directly in an index.
AAI000784 12/05/2025
