Motley Fool Money – Private Assets Meet Public Markets

Date: October 16, 2025
Host: Tyler Crowe
Contributors: John Quast, Matt Frankel

Episode Overview

In this episode, Tyler Crowe, John Quast, and Matt Frankel unpack the latest earnings reports from major banks, examine the ongoing boom in private assets and their entry into public retirement markets, and share their top stock ideas. The conversation moves beyond the typical tech/AI focus, instead zeroing in on financial sector trends, the implications of deregulating private assets for retirement accounts, and highlights some underappreciated stocks.

Key Discussion Points & Insights

1. Big Bank Earnings & Investment Banking’s Resurgence

• Banks Covered: JP Morgan, Bank of America, Wells Fargo, Morgan Stanley
• Key Winners:
  • Wells Fargo: Stock up 10% post-earnings; buoyed by asset cap removal and improved targets for return on tangible common equity (17–18%).
    • “Wells Fargo is particularly interesting because they don’t depend as much on investment banking and were a big winner. Their stock’s up 10% since earnings.” (Matt Frankel, 01:50)
    • CEO Charlie Scharf: Aiming to make Wells Fargo the No. 1 consumer bank and break into the top 5 for investment banking.
  • Morgan Stanley & Bank of America:
    • Benefited from a surge in IPO and M&A activity, with investment banking fees up 43–44% year-over-year.
    • “Bank of America reported a surprise decline in their credit loss provision, which is going to come into play a little later in our conversation.” (Matt Frankel, 02:12)
• Investment Banking Boom:
  • Ernst & Young reports M&A deal values in September up 110% YOY; Q3 M&A up 239% over 2024.
  • JP Morgan’s CFO, Jeremy Barnum, and Bank of America’s CFO, Alistair Borthwick, see strong pipelines for further deals.
    • “There have been some IPO deals kind of sitting in the pipes ready to go and they’ve just been waiting for better valuation and lower volatility, and the third quarter delivered on that.” (Tyler Crowe, 03:47)

2. Warning Signs: Private Credit Concerns

• Jamie Dimon (JP Morgan CEO): Raised flags about private credit and lending standards:
  • Recent bankruptcies (First Brands Group, Tricolor) exposed systemic links between private creditors and big banks.
  • “We don’t know how good these folks’ underwriting is… which it’s either a commentary of the market or just Dimon trying to talk up JP Morgan’s book.” (John Quast, 04:54)
• Analysis:

  • Dimon's caution could signal genuine risk or just PR—worth tracking in future quarters.

  • Contrast: Wells Fargo and Bank of America both lowered their loan loss provisions, implying confidence in credit quality.

    “The question is, what changes that and how secure is that?... It feels like we’re just a social media post away from changing some investor sentiment dramatically.” (Tyler Crowe, 05:53)

  • Matt Frankel: Is the subprime auto lending sector a “house of cards,” or simply isolated trouble?

3. Private Assets in Your Retirement Account

• Growing Push:
  • Asset managers trying to package private equity/credit into 401(k)s and retirement accounts.
    • Examples: Blackstone, BlackRock innovating products for retail investors.
• Balancing Opportunity and Risk:
  • “Making private assets available to individuals gives us a lot more investing choices… Conversely, I can see asset managers… kind of just charging high fees for the privilege and access to private funds.” (John Quast, 08:29)
  • Potential Upside:
    • More options for individual investors
    • Access to companies like Neuralink (Elon Musk) pre-IPO
  • Major Risks:
    • High fees for access
    • Lack of investor education leading to risky/inappropriate allocations
      • “Opportunity without education is like giving a small child a box of matches. They can get hurt and they can break things.” (Tyler Crowe, 09:53)
• Regulatory Perspective:
  • Debate over whether this is actually about giving investors new tools or just reintroducing expensive, fee-heavy products.
    • “The S&P 500 has been a great wealth builder over the long term… The problem is that the average person doesn’t save enough for retirement. It’s not that they haven’t had opportunities to build wealth.” (Matt Frankel, 10:18)
• Who Benefits Most?

  • Likely more for inattentive investors who auto-enroll in whatever is on offer, as opposed to those who do their own diligent stock picking.

    “Moves like this feel like an appeal to the inattentive investor… You can see the marketing: ‘private equity isn’t subject to the whims of the market’ for long-term investments…” (John Quast, 11:27)

4. Stocks on Our Radar

• TripAdvisor (TRIP) — Tyler Crowe (13:11)
  • Main value may lie in its subsidiary, Viator, a fast-growing, high-margin travel experiences platform.
  • “Spinning it out or IPOing it in some way may unlock that value. Viator would have a $3 billion market cap on a standalone basis… TripAdvisor right now has a $1.8 billion market cap.”
• Empire State Realty Trust (ESRT) — Matt Frankel (14:33)
  • Owns the Empire State Building and other NYC office buildings.
  • Stock is 35% below highs but business remains strong; real estate peer SL Green just made a big bet on NYC offices.
    • “If that valuation is… the right price, the Empire State Building alone could be worth more than the current market cap of the company.”
• SLM Corp (“Sallie Mae”) — John Quast (15:33)
  • Focuses on student loans—often for advanced degrees, with strong credit quality.
  • Attractive net interest margins and low default rates; trading at moderate 11–12x earnings.

Notable Quotes & Memorable Moments

• “Opportunity without education is like giving a small child a box of matches. They can get hurt and they can break things.”
  — Tyler Crowe (09:53)

• “Moves like this feel like an appeal to the inattentive investor… You can see the marketing: ‘private equity isn’t subject to the whims of the market’...”
  — John Quast (11:27)

• “Investment banking was really strong and Wells Fargo is particularly interesting because they don’t depend as much on investment banking and were a big winner.”
  — Matt Frankel (01:50)

• “It feels like we’re just a social media post away from changing some investor sentiment dramatically.”
  — Tyler Crowe (05:53)

Timestamps for Key Segments

| Timestamp | Segment/Event | |------------|-------------------------------------------------------| | 00:00–01:24| Episode intro & earnings opening | | 01:24–03:00| Big bank earnings and standouts | | 03:00–04:22| M&A/IPO boom and investment banking outlook | | 04:22–06:47| Private credit risks; Jamie Dimon’s warnings | | 06:47–07:36| Credit quality vs. loss-reserve reductions | | 08:08–11:27| Private assets entering retirement accounts discussion| | 13:11–15:33| “Stocks on Our Radar”: TRIP, ESRT, SLM |

Takeaways

• The banking sector is thriving on M&A and IPO rebounds, but concerns linger about private credit risks.
• The introduction of private assets into public retirement vehicles promises new opportunities—as well as serious risks, especially around fees and investor knowledge.
• The featured stock picks emphasize underappreciated companies with hidden or misunderstood value.

Overall, the episode underscores the importance of critical thinking and due diligence in an environment where the investing landscape—and its products—are evolving quickly.