Podcast Summary:

Bloomberg Talks
Episode: JPMorgan Asset Management CEO George Gatch Talks Public Versus Private Markets
Date: October 1, 2025
Host: Bloomberg (Interviewer: Katie)
Guest: George Gatch, CEO of J.P. Morgan Asset Management

Episode Overview

This episode features an in-depth conversation with George Gatch, CEO of J.P. Morgan Asset Management, focusing on the evolving relationship between public and private markets, liquidity considerations, portfolio construction, innovation in asset management, and regulatory developments such as ETF share class exemptions. Gatch provides nuanced insights into the current investment landscape, the integration of private credits into traditional portfolios, and the future direction of asset management tools and products.

Key Discussion Points & Insights

1. The Blurring Line between Public and Private Markets

[00:34 – 02:15]

• Integration of Markets:
  Gatch highlights the increased convergence between public and private markets, noting how investors may soon look across both landscapes for optimal opportunities.

  • “The opportunity to be able to provide investors with the advantage of public markets, deep liquidity, transparency fees and combine that with the diversification potential that you have in private markets…is great for investors.”
    — George Gatch [00:59]

• Due Diligence on Liquidity:
  Emphasizes that while combining private assets can be beneficial for diversification, it’s crucial to balance these benefits with liquidity constraints.

• Portfolio Flexibility:
  Portfolio managers now have greater optionality to move between syndicated lending, public bonds, and private credit based on relative values—tailoring solutions to market conditions and investor needs.

2. Liquidity & Portfolio Construction

[02:15 – 03:25]

• Private Credit Allocation in Portfolios:
  Gatch refrains from recommending a universal allocation to private credit, underscoring the personalized approach:

  • “It really depends on the individual circumstances and the investment horizon and risk tolerance of the individual investors. I don't think you can answer that…as a general statement.”
    — George Gatch [02:45]

• Importance of Liquidity in Daily-Valued Products:
  Especially for ETFs and mutual funds that offer daily redemptions/purchases, maintaining adequate liquidity is paramount, especially as the industry explores using private assets in such vehicles.

3. Return Potential and Portfolio Innovation

[03:25 – 04:38]

• Rethinking the “60/40” Model:
  The host brings up diversification in the context of the traditional 60/40 (stock/bond) retirement model.

• Innovation in Public Markets:
  Gatch points to ongoing innovation, including derivative income strategies:

  • “Public markets aren't dead. There's a tremendous amount of innovation…to produce uncorrelated returns to diversified portfolios. Further, private markets are going to offer the same opportunity…”
    — George Gatch [03:45]

• Fee and Disclosure Considerations:
  He stresses the importance of transparency and understanding fee structures in private markets.

4. The Future: Convergence and Market Evolution

[04:38 – 05:24]

• Will Public & Private Markets Become More Alike?
  Gatch predicts an increasing similarity:

  • “Is the private markets going to look more, more like public markets? Probably, and that's going to relate to transparency, it's going to relate to fees, secondary market liquidity, those are all going to change the dynamics of…markets.”
    — George Gatch [04:54]

• Continued Innovation:
  The march toward transparency and liquidity is seen as transformative and positive for investors.

5. Relative Valuations: Public vs. Private Credit

[05:24 – 06:28]

• Current Market Outlook:
  Gatch observes that markets are currently pricing in a healthy economic outlook, with narrow spreads in both public high yield and private credit.

• Preference for Public Markets Now:
  He points out that, considering liquidity and current conditions, public markets may offer relative value:

  • “I continue to believe that public markets offer tremendous opportunity…particularly taking into account liquidity considerations, I tend to steer today towards public markets as being relative better value.”
    — George Gatch [05:47]

6. ETF Share Classes – Regulatory Change

[06:28 – 07:53]

• SEC Exemptive Relief:
  Discussion of the recent SEC move allowing ETF share classes alongside mutual funds and JP Morgan’s similar pending application.

• Industry Impact:
  Gatch emphasizes how combining the advantages of mutual funds (such as tax deferral) and ETFs (transparency, liquidity, lower fees) could be transformational:

  • “One of the most exciting things…is now world class active investment capabilities available with the benefits of ETFs, transparency, liquidity and fees...the ability for an individual investor to tax free exchange from a mutual fund and then to get the benefits of an ETF traded on an exchange is going to be just another potential transformation of the asset management industry…”
    — George Gatch [07:04]

Notable Quotes

• “The ability for a portfolio manager to look at relative values across all of those markets…and to move across those markets I think is going to be advantage over time assuming investors can handle the liquidity of private markets, which is a very important consideration.”
  — George Gatch [01:36]

• “Disclosures, transparency, the level of fees are something that individual investors and institutions need to consider quite closely in evaluating the use of private markets.”
  — George Gatch [03:45]

Memorable Moments & Timestamps

• [00:59] — Gatch on the need for cautious integration of privates.
• [02:45] — Gatch clarifies there is no "one-size-fits-all" allocation for private credit.
• [03:45] — On public markets innovation and the new role of derivatives.
• [05:47] — Gatch tips public markets as currently offering better value.
• [07:04] — Gatch’s enthusiasm about ETF share class innovations and potential tax efficiency for investors.

Conclusion

George Gatch offers a pragmatic yet optimistic view of the asset management landscape—highlighting the benefits of innovation, the importance of liquidity, and the significant regulatory and product evolution on the horizon. He portrays a future where the boundaries between public and private investments continue to blur, driven by technology, transparency, and investor demand for efficiency and flexibility. The integration of ETF share classes represents just one of many potential revolutions in how asset management serves both institutional and retail investors.