Episodios
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode dives into one of the most topical trends in the evolution of wealth management platforms and their adoption of private markets.
We are joined by Tom Cohn and Amita Schultes of Cerity Partners, where they discuss the recent combination of their two respective businesses, Cerity Partners, the $100B+ national wealth management firm, and Agility, a leading OCIO business.
Tom and Amita discuss their merger, why there was a need to create customization for wealth investors in private markets, and how bringing on a leading OCIO business takes Cerity Partners’ capabilities to a new level as a solutions provider in private markets.
Tom is the Chief Solutions Officer and a Partner in Cerity Partners’ New York office. He’s a member of the firm’s Leadership Team. He has over ten years of experience in various investment management roles, previously serving as an Investment Analyst at Spero-Smith Investment Advisors, where he was responsible for due diligence and analysis of third-party managers and assisted in global market and asset allocation research.
Amita is a Partner in Cerity Partners’ New York office, managing Cerity Partners’ OCIO client portfolios. She’s a member of the OCIO Investment Committee. Amita brings over 20 years of experience as an investment consultant to bear to the firm. Before joining Cerity Partners, Amita was a Partner and Client Portfolio Manager at Agility, where she served as a voting member of Agility’s Investment Committee. Prior to Agility, she was a Partner, Managing Director, and Senior Consultant at Colonial Consulting, serving as an investment consultant for endowments, foundations, and pension plans. She also served as a Senior Consultant at Ibbotson Associates.
Tom, Amita, and I had a fascinating discussion. We covered:
The why and the how behind Cerity Partners’ merger with Agility.How wealth management platforms can balance customization and scalability.Why scale matters in wealth management.How alternative asset managers can differentiate when engaging with the wealth channel.Thanks Tom and Amita for coming on the show to share your views and wisdom on wealth management and private markets.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction to our Sponsor, Ultimus Fund Solutions02:05 Guest Introduction: Tom Cohn and Amita Schultes
07:32 Merger Benefits and Synergies
08:19 Client Services and Customization
09:32 OCIO and Wealth Management Integration
10:45 Why Partner Now?
11:40 Cultural Alignment and Expertise
12:38 Amita's Perspective on the Partnership
13:16 Wealth Management as Institutional LPs
14:23 Cerity Partners' Institutional Approach
14:54 Private Markets Evolution
16:25 Operational Excellence in Private Markets
17:35 Research and Manager Selection
20:56 Investment Objectives and Customization
22:27 Institutional and Wealth Client Synergies
28:16 Access and Long-term Relationships
30:06 Customization and Scalability
32:20 Educational Component in Client Investments
32:36 Framework for Custom Portfolios
33:10 Resource Allocation for Customization
33:47 Importance of OCIO Business
34:16 Next Innovation in Investment Solutions
34:38 Turnkey Solutions for Operational Complexities
35:39 Model Solutions and Manager Selection
36:34 Combining OCIO and Wealth Management Practices
37:32 Evolving Structures in Private Markets
37:54 Workflows and Technology in Private Markets
38:39 Client Experience and Operational Expertise
39:37 Defining Private Markets
41:13 Importance of Clear Definitions
41:54 Role and Goals of Private Market Investments
44:15 Partnerships and Mergers at Cerity Partners
47:05 Evaluating Investment Managers
49:06 Trust in General Partner Relationships
51:16 Identifying Manager's Edge
53:24 Training and Methodology in Manager Selection
55:51 Challenges for Managers with Wealth Channel Capital
56:47 Operational Challenges for Smaller Managers
58:06 Future Trends in Alternative Investments
01:01:00 Conclusion and Final Thoughts
Editing and post-production work for this episode was provided by The Podcast Consultant.
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Welcome back to the Alt Goes Mainstream podcast.
We had a chance to sit down with Blue Owl Co-CEO Marc Lipschultz recently at their Nest Network Summit for RIAs and private banks in Laguna Beach.
It was a perfect setting to discuss Blue Owl’s incredible growth, which has been in part due to its unique and focused partnership with the wealth channel.
Blue Owl is one of the industry’s largest alternative asset managers and has charted an impressive growth path in the nine years since its founding. Blue Owl has scaled to over $250B of AUM and has proven to be one of the top firms at raising capital from the wealth channel.
Marc is a private markets industry veteran who has been instrumental in building not just one, but two of the industry’s biggest players.
He spent over two decades at KKR, serving on the firm’s Management Committee, and as the Global Head of Energy and Infrastructure after joining the firm as one of the first 20 employees. He then partnered with Blackstone GSO Founder Doug Ostrover and Goldman Sachs Partner and Co-Head of Leveraged Finance Craig Packer to co-found Owl Rock Capital Partners, the predecessor firm to Blue Owl’s Credit platform. Owl Rock combined with Dyal Capital Partners to become the publicly traded entity Blue Owl in May 2021 and has since grown to over $250B in AUM and $2.2B in revenue.
Owl Rock and now, Blue Owl’s, flight is emblematic of the evolution of alternative asset managers. Marc and I had a fascinating conversation. We discussed:
How Blue Owl’s growth highlights trends that have propelled alternative asset management into the mainstream.Why scale matters.Their focus on private credit, data centers, and digitalization.Their focus on private wealth. The power of permanent capital.Thanks Marc for coming on the show to share your wisdom and expertise in private markets.
You can also see a recent Q&A with Marc on AGM here.
A number of the themes discussed by Marc in the podcast and Q&A appear in Blue Owl’s 2025 Market Outlook. You can read Blue Owl’s 2025 Market Outlooks across Credit, Real Estate, and GP Strategic Capital, where their teams outline themes that are top of mind and how it will impact their respective sectors.
Show Notes
00:00 Welcome to the Alt Goes Mainstream Podcast
00:42 Interview with Marc Lipschultz
00:57 Blue Owl's Growth and Success
01:10 Marc's Background and Career
03:20 Marc's Journey at KKR
03:31 The Early Days of Private Markets
05:18 Building Owl Rock and Blue Owl
05:45 Growth at KKR and Blue Owl
06:17 Lessons from KKR
07:21 Serving Investors and Delivering Results
08:29 Operationalizing Culture
09:42 Serving Investors with Excellence
10:04 Focus on the Wealth Channel
10:25 Democratization of Alts
11:54 Building a Firm to Serve Individuals
13:41 Building a Scalable Firm
16:23 Unified Wealth Platform
18:42 Balancing Customization and Scale
23:48 Brand and Trust in Private Markets
26:27 Opportunities in Private Markets
28:38 Acquisition of IPI and Strategic Growth
28:53 The Role of Scale in Private Markets
31:10 Growth and Competition in Private Credit
32:19 Challenges in Moving from Base to High-End Markets
32:30 Meeting the Needs of Large Borrowers
32:38 Market Dynamics and Spread Variations
33:03 High-End Market Realities
33:31 Cost of Capital and Borrowing Limits
34:28 Predictability, Privacy, and Partnership
35:12 Natural Market Boundaries
35:41 Secular Trends in Private Credit
35:43 The One-Stop Shop Concept
36:10 Risk Management in Credit
36:15 Concentration Risks in Credit vs. Equity
37:01 Maintaining Low Loss Rates
37:40 Impact of Capital on Credit Performance
38:25 Durability of Large Companies
39:44 Private Financing Trends
40:28 Strategic Business Orientation
40:52 Growth Trends and Market Focus
41:46 Skating to Where the Puck is Going
46:48 Permanent Capital and Business Strategy
50:19 Building a Purpose-Built Firm
52:51 Lessons from the Washington Commanders and Tampa Bay Lightning
53:15 The Role of Culture in Business and Sports
55:13 Intentionality and Good Fortune
55:52 Commitment to Culture and Values
57:04 People as the Core of Success
57:46 Wrapping Up the Conversation and Closing Remarks
Editing and post-production work for this episode was provided by The Podcast Consultant.
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode features an industry titan who has been on the forefront of the intersection of alts and wealth.
We talk with Stephanie Drescher, Partner, Chief Client and Product Development Officer at Apollo and a member of the firm’s Leadership Team. She oversees the Client and Product Solutions Group (CPS), which includes Apollo’s Global Wealth Management Solutions, Institutional Sales, and Global Product teams. She is also involved with Apollo’s strategic investments in private markets, as a Board Observer at iCapital and a Board Member at Vega.
Stephanie is responsible for leading Apollo’s global wealth buildout, which is one of the firm’s strategic priorities. They’ve invested heavily in educational resources and have built out a specialized team to work with the wealth channel. Apollo has set a goal of achieving $150B from its global wealth business by 2029 and, in 2024, under Stephanie’s leadership the global wealth business exceeded the total capital raised in 2023 from the wealth channel.
Before joining Apollo in 2004, Stephanie was with JP Morgan for 10 years, working primarily in its Alternative Investment Group.
Stephanie and I had a fascinating conversation about how to build and scale a business in the wealth channel. We discussed:
What is safe and what is risky?How can investors approach asset allocation and portfolio construction?How working with institutional investors has influenced and helped Stephanie think through how to work with investors in the wealth channel.The anatomy of building a wealth business.How critical is brand building when working with the wealth channel?Thanks Stephanie for coming on the show to share your wisdom and expertise on private markets and work with the wealth channel.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and Message from our Sponsor, Ultimus Fund Solutions01:55 Welcome Back to Alt Goes Mainstream
02:04 Introducing Stephanie Drescher
03:55 Stephanie's Journey at Apollo
04:14 Focus on Institutional Clients
04:43 Strategic Focus on Wealth Channels
05:05 Learning from Different LPs
05:27 Early Days at J.P. Morgan
08:04 Importance of Communication
08:17 Transparency and Client Centric Approach
08:56 Educational Initiatives at Apollo
10:07 Apollo Academy Engagement
10:42 Content Creation Strategy
11:37 Combining Short and Long Form Content
11:43 Direct Client Communication
12:00 Distribution and Marketing
12:26 Client Centric Approach
13:06 Creating a Narrative for Private Markets
13:40 Defining Private Markets
14:34 Public vs. Private Markets
15:50 Changing Definitions in Private Markets
16:18 Impact of 2022 on Public Markets
17:02 Concentration in Public Markets
17:41 Benefits of Private Markets
18:17 Helping Clients Understand Private Markets
18:44 Developing Accessible Solutions
19:45 Client Focused Solutions
19:51 Balancing Client Needs and Market Nuances
20:15 Apollo's Origination Capability
22:12 Athene's Role in Apollo's Strategy
24:26 Tax Efficiency in Private Markets
25:39 Wealth Channel vs. Institutional Investors
25:48 Solving for Tax Challenges
25:53 Listening to Client Needs
27:31 Avoiding K1s and Capital Costs
28:17 Process and Adoption of Private Markets
29:07 Investing in Technology
30:08 Insights from Technology Investments
31:06 Shared Industry Solutions
32:02 Digital Outreach and Thought Leadership
32:38 Apollo's Brand and Public Presence
33:02 B2B2C Relationships
33:10 Building Apollo's Brand
33:50 Communicating Apollo's Value Proposition
34:04 Reaching the End Client
35:39 Media Presence and Brand Awareness
36:59 Tangible Impact of Private Credit
37:35 Evolution of Private Credit
38:14 Role of Asset Backed Credit
38:46 Alternative Asset Managers in Financial Markets
39:18 Partnerships and Convergence
39:48 Discretionary Allocations
40:11 401(k) Business and Retirement Goals
41:18 Focus on Net Return
41:52 Provocative Questions on Liquidity
43:00 Consistency of Messaging
43:26 Innovative Parts of Apollo's Business
43:49 Changing Definitions of Alternatives
45:23 Phases of Adoption in Wealth Channel
47:00 Strategic Focus on Partnerships
52:39 Balancing Scale and Customization
53:26 Personal Reflections and Future Investments
54:48 Conclusion and Farewell
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode dives into an important and growing part of the private markets ecosystem: how investors can access and invest into alternatives through their retirement funds.
We have Eric Satz, the Founder & CEO of Alto, a self-directed IRA custodian, with us today to discuss how he’s on a mission to provide everyday Americans with the same investment opportunity long favored by institutional investors.
Alto provides custody for a wide array of alternative assets, including private companies, real estate, crypto, loans, and securitized collectibles.
Alto has streamlined the process for companies, funds, and SEC-registered investment platforms to include IRA investors in their offerings. They’ve partnered with firms across the alts space, including AngelList, Coinbase, EquityZen, Republic, Masterworks, and others, to enable investors to invest into private markets with their IRA.
Eric is a serial entrepreneur and former investment banker. He worked at DLJ / Credit Suisse First Boston before co-founding Currenex (acquired by State Street for $564M), Plumgood Food, and Tennessee Community Ventures. His passion for entrepreneurship led him to serve on the Board of the Tennessee Valley Authority from 2015 to 2018 and he teaches an entrepreneurship class to high school students.
On today’s podcast, Eric teaches us all about the merits of a self-directed IRA. We had a fascinating discussion about why and how it makes sense to use an IRA to invest into private markets investments and how he’s taking lessons learned from prior IRA businesses to build Alto.
We discussed:
Rethinking retirement investing.The evolution of the self-directed IRA market.Alto’s vision: TurboTax for IRAs.Structural challenges with using IRAs for private markets investments.The role of technology with streamlining retirement investing.The evolution in investor awareness of retirement investing.The importance of duration matching.Thanks Eric for coming on the show to share your knowledge and passion for alternatives.
Show Notes
00:00 Introduction: Going Mainstream00:38 Welcome to Alt Goes Mainstream Podcast
00:52 Introducing Eric Satz and Alto
01:33 Eric's Background and Entrepreneurial Journey
01:57 The Mission of Alto
02:01 The TurboTax for IRAs
02:05 The Importance of Retirement Accounts in Private Markets
02:29 Welcoming Eric to the Podcast
02:37 The Evolution of Private Markets and IRAs
02:51 The Beginnings of Alto
03:13 Challenges in Self-Directed IRAs
03:54 The Vision for Self-Directed IRAs
04:28 Changing Conventional Wisdom on Retirement Investing
05:40 The Demographics of the IRA Industry
06:21 The Growth of IRA Accounts
06:38 The Allocation to Alternative Assets
07:36 Barriers to Private Market Investments in IRAs
07:50 Psychological Barriers to Alternative Investments
08:35 Structural Challenges in Using IRAs for Private Investments
08:53 The Role of Technology in Streamlining Investments
09:02 The Launch of Alto with AngelList
10:05 The User Journey in Private Market Investments
10:43 The Role of Financial Advisors
11:10 Educating Investors on Private Markets
12:25 The Evolution of Investor Knowledge
12:35 The Importance of Tax-Advantaged Investments
13:11 The Financial Advisor's Perspective
14:05 The Benefits of Illiquidity in Private Markets
15:54 The Role of Large Asset Managers
16:17 The Branding of Private Markets
16:45 The Growth of Athene and Financial Advisors
16:57 The Importance of Current Income in Retirement Accounts
17:43 The Younger Generation's Investment Behavior
18:05 The Impact of Evergreen Fund Structures
19:04 The Role of Asset Management Firms
20:02 The Future of Private Market Solutions
20:15 The Role of Alto in Private Market Investments
20:54 The Importance of Infrastructure in Private Markets
21:44 The Evolution of Alto's Business Model
21:50 The Growing Awareness of Private Markets
23:57 The Role of the Alto Marketplace
24:35 The Inclusion of Crypto in IRAs
25:17 The Challenges of Transitioning Assets to IRAs
25:50 The Impact of Friction on Investment Decisions
27:46 The Success of Alto's Technology
28:35 The Role of Funds in Promoting IRAs
29:36 The Future of Private Markets and Wealth Channels
31:11 The Role of Financial Advisors in Private Markets
31:58 Educating Financial Advisors on IRAs
32:13 The Importance of Conferences and Networking
47:13 The Future of Private Markets and Retirement Accounts
47:32 The Role of Regulations in Private Market Investments
50:27 Conclusion: The Potential of Retirement Accounts in Private Markets
Editing and post-production work for this episode was provided by The Podcast Consultant.
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Welcome back to the Alt Goes Mainstream podcast.
Today’s guest is an industry leader in wealth management who has been very active in private markets.
Mike Tiedemann is a pioneer in the wealth management space in a number of ways.
He's at the helm of the first pure play publicly traded wealth management business, AlTi Global. AlTi, a $72B AUM platform, came out of a merger between Mike's successful and highly regarded wealth management and alternatives business, Tiedemann Advisors, which merged with Alvarium.
Founded in 1999, Tiedemann grew into a global company under Mike's leadership, expanding across geographies and building out a Trust Company and an alternatives manager on its way to overseeing $29B AUA.
Mike has since run the combined company of AlTi Global as CEO, where they've built a global wealth management and alternatives platform.
They are also backed by Allianz and Constellation Wealth Capital as they continue to serve many UHNW families worldwide.
Mike is very well-versed in private markets given his deep expertise in allocating to many of the industry's best leading managers so we had a fascinating conversation about the intersection of private markets and wealth management.
We discussed:
The business of wealth management.The evolution of the wealth management industry.Why understanding private markets is so critical for wealth managers.The advantages of being a global wealth management business.The experience of being a publicly traded pure play wealth management firm.How to structure investments for global clients.The need to customize private markets portfolio construction as a way to differentiate versus other wealth management platforms.Thanks Mike for coming on the show to share your views and wisdom on wealth management and private markets.
This conversation is for informational purposes only and should not be construed as investment advice. It does not endorse or recommend any specific investments, products, or strategies. The opinions shared regarding investment approaches, risk allocations, and portfolio decisions are purely for discussion and do not constitute formal recommendations.
Any statements, assertions, or views regarding past or future market events or investment approaches are based on the speaker’s beliefs and do not necessarily reflect those of the firm as a whole, unless explicitly stated with supporting sources. Additionally, some statements may be forward-looking in nature, and actual outcomes may differ materially from expectations.
A word from AGM podcast sponsor, Ultimus Fund SolutionsThis episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and Message from our Sponsor Ultimus Fund Solutions01:18 Podcast Theme Song
01:55 Welcome to Alt Goes Mainstream
01:58 Introducing Mike Tiedemann
05:26 Lessons from Mike’s Early Career in Brazil
06:51 Geopolitics and Investing
09:10 Private Markets Insight
09:33 History of Tiedemann Advisors
11:13 Evolution of Wealth Management
13:18 Challenges in Wealth Management
13:40 Multi-Strategy Managers
16:23 Client Needs and Expectations
17:58 Global Expansion and Services
20:25 Investment Differentiation
23:11 Tax Efficiency in Investments
24:23 Partnerships and Collaborations
26:18 Decision to Go Public
27:52 Benefits of Being Public
28:00 Challenges of Going Public
28:49 Building a Permanent Business
28:59 The Importance of Permanent Capital in Wealth Management
29:11 Wealth Management Business Longevity
29:54 Public Company Dynamics
30:15 Surviving Market Downturns: Strategies for Wealth Management Firms
31:12 Industry Consolidation
32:00 Global Wealth Management Focus
32:54 Regional Wealth Hubs
34:08 Nuances of Global Markets
35:30 Structuring for Global Clients
37:19 Creating Scalable Private Market Offerings
38:27 Differentiating in Private Markets
40:11 Tax Efficiency in Alternatives
40:52 Innovative Investment Structures
41:19 Partnerships with Managers
41:58 Public vs. Private Wealth Management
43:44 Brand and Public Listing Impact
45:35 Future of Wealth Management
47:26 Technology and AI in Wealth Management
48:38 Talent and Retention
50:48 Skills for Modern Wealth Managers
51:57 Next Gen Client Demands
53:11 Exciting Trends in Private Markets
54:40 Capital Flows and Private Credit
56:33 Challenges in Private Markets
58:16 Favorite Alternative Investments
01:01:05 Concluding Thoughts
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode features an industry leader who has pioneered working with the wealth channel.
We talk with Joan Solotar, the Global Head of Private Wealth Solutions at Blackstone, where she also serves on the firm’s Management Committee. Joan has been responsible for leading Blackstone’s impressive work in the wealth channel. She’s grown the firm’s footprint in private wealth to over $250B in assets across Blackstone funds, making the wealth channel comprise roughly a quarter of Blackstone’s $1T AUM.
Blackstone Private Wealth Solutions’ mission is to bring institutional quality products across a broad spectrum of alternative asset classes to high net worth clients and their advisors.
Before joining Blackstone in 2007, Joan was Head of Equity Research at Bank of America Securities and a highly ranked Institutional Investor All Star financial services analyst at Credit Suisse and Donaldson, Lufkin & Jenrette. She also serves on the Board of Directors at First Eagle Investment Management.
Joan and I had a fascinating conversation about how to build and scale a business in the wealth channel. We discussed:
How Blackstone built a $250B AUM business in the wealth channel across Blackstone funds.How Joan’s background in equity research helped her as she built a business for the wealth channel.The early days of building Blackstone’s Private Wealth Solutions business.Where, why, and how private markets can fit into a portfolio.How model portfolios will evolve.Why private markets are no longer an alternative.How to build an effective brand in asset management.Thanks Joan for coming on the show to share your wisdom and expertise on private markets and your work with the wealth channel.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Message from our Sponsor, Ultimus Fund Solutions01:18 Alt Goes Mainstream Theme Song
02:02 Guest Introduction: Joan Solotar
03:45 Joan's Background
05:00 Early Days at Blackstone
06:39 Challenges in Private Wealth Business
08:31 Convincing Advisors
10:44 Growth of Private Wealth Business
11:12 Advisor Allocation to Private Markets
13:27 Understanding Liquidity and Risk
14:36 Educating Advisors on Private Markets
15:55 Client Demand for Private Markets
17:08 Portfolio Construction and Alternatives
20:56 Ease of Use in Private Investments
21:23 Model Portfolios and Private Investments
22:32 Advisor Relationships with Blackstone
24:10 Differentiating Blackstone's Experience
25:19 Commitment to Advisors
25:40 Commitment from Blackstone's Leadership
27:27 Complexity of Selling Private Investments
28:54 Blackstone's Growth and Future Goals
29:53 Importance of Brand and Marketing
31:14 Integration of Marketing and Sales
31:38 Educating Blackstone's Team
31:56 Blackstone's Training Programs
34:50 Weekly Global Meetings
36:44 Humanizing Blackstone's Team
39:07 Blackstone's Holiday Video
40:14 Consumer-Facing Investments
41:27 Joan's Favorite Investment Theme: AI
41:59 Blackstone's AI Investment Strategy
43:19 Conclusion of the Podcast
Editing and post-production work for this episode was provided by The Podcast Consultant.
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Welcome back to the Alt Goes Mainstream podcast.
Alt Goes Mainstream was live from $1.2T AUM asset manager Nuveen’s nPowered conference, a two-day event bringing together Nuveen thought leaders and industry experts to explore challenges and opportunities in private markets.
We interviewed some of Nuveen’s senior leadership on site to hear their views and perspectives on private markets, working with the wealth channel, and product innovation.
We sat down with Keith Jones, the Global Head of Alternative Investments Product for Nuveen, and a member of the Extended Leadership Team. He’s responsible for the development and ongoing management of alternative investment products distributed through Nuveen’s institutional, wealth management, and retirement channels globally.
Keith and I had a fascinating conversation about product innovation in the wealth channel, how to educate and market products specifically designed for the wealth channel, and why it’s not a “one-size-fits-all” approach.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction to Ultimus Fund Solutions01:55 Welcome to Alt Goes Mainstream
01:58 Live from Nuveen's nPowered Conference
02:19 Conversation with Keith Jones
03:25 Keith Jones' Background
04:04 Nuveen and TIAA Collaboration
04:47 Keith's Role at Nuveen
05:01 Product Innovation in Wealth Channel
05:15 Structuring Products for Wealth Channel
05:37 Client-Centric Approach at Nuveen
06:59 Challenges in Structuring Products
07:39 Credibility and Brand Importance
09:36 Client Experience and Reporting
09:46 Brand and Credibility in Product Creation
10:40 Nuveen's Real Estate Focus
11:38 Feedback from Distribution Teams
12:33 Product Governance at Nuveen
13:19 Institutional vs. Wealth Channel
16:35 Evergreen Structures
18:08 Operational Considerations
18:51 FinTech Solutions in Structuring
31:48 Future of Product Innovation
32:20 Real Assets and Farmland
33:25 Fee Compression in Alternatives
36:13 Balancing Competing Forces
36:51 Importance of Diversification
38:34 Industry Collaboration for Change
39:12 Conclusion and Final Thoughts
39:58 Closing Remarks
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Welcome back to the Alt Goes Mainstream podcast.
Alt Goes Mainstream was live from $1.2T AUM asset manager Nuveen’s nPowered conference, a two-day event bringing together Nuveen thought leaders and industry experts to explore challenges and opportunities in private markets.
We interviewed some of Nuveen’s senior leadership on site to hear their views and perspectives on private markets, working with the wealth channel, and product innovation.
We talked with Jeff Carlin, Senior Managing Director, Head of Global Wealth Advisory Services at Nuveen, and a member of the Senior Leadership Team. He’s responsible for leading the placement, distribution, and support of all products through the US Wealth distribution channel.
Jeff and I had a fascinating conversation about working with the wealth channel and how Nuveen has created products to serve this growing investor segment.
Thanks Jeff for coming on the Alt Goes Mainstream podcast to share your wisdom and expertise on private markets, private wealth, and distribution. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction to our Sponsor, Ultimus Fund Solutions01:58 Live from Nuveen's nPowered Conference
02:26 Jeff Carlin's Role at Nuveen
02:33 Nuveen's Wealth Business
03:28 Jeff Carlin's Career Background
06:43 Evolution of Wealth Distribution
06:56 Changes in Advisor Discretion
09:52 Consultative Selling in Wealth Management
10:04 Hiring Distribution Professionals
12:10 Building Trust with Advisors
14:03 Indispensable Partnerships
16:41 Public vs. Private Markets
19:14 Global Wealth Management
19:44 Regional Differences in Distribution
20:59 Focus on Specific Channels
23:15 Structural and Non-Structural Advantages in Distribution
27:32 Public and Private Market Strategies
27:43 Portfolio Solutions Group
27:57 Allocating to Private Markets
28:19 Balancing Third-Party and Own Products
28:43 Advisor's Role in Portfolio Construction
29:28 Challenges in Wealth Channel Distribution
29:36 SMA Business vs. Private Markets
30:14 Intricacies of Private Market Investments
30:35 Client Understanding and Implementation
31:09 Drawdown Structures and Client Needs
31:16 Perpetual Vehicles in Private Credit
31:53 Simplifying Private Fund Investments
33:00 Managing Capital Calls and Cash Flows
34:45 Evergreen Structures in Private Markets
35:10 Future of Private Market Investments
36:20 Technology and Structural Innovations
36:52 Blockchain and Distributed Ledger Technology
37:40 Adoption of New Technologies
38:29 Excitement About Private Markets
39:18 Generational Differences in Investment
40:11 Education and Intergenerational Wealth Transfer
41:23 Gamification and Investment Psychology
47:08 Advisor Education and Private Markets
48:49 Changing Perceptions of Private Markets
52:41 Conclusion and Final Thoughts
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with a founder who is building mission-critical software for private equity firms.
I sat down in Citywire’s London studio with Venkat Subramaniam, the Co-Founder of DealsPlus, to discuss why he has built a digital solution to streamline, digitize, and automate the management of complex holding and capital structures for private equity firms.
Historically, private equity firms have relied on humans and manual processes to manage and track cap tables, transactions, and entities. This process has required significant human intervention and has often been rife with errors, making deals harder to consummate and transactions. Venkat has taken his 15 years of experience advising private equity managers on cross-border transactions, most recently as an Associate Partner at EY UK, to build DealsPlus to create a single source of truth for capital structures for private equity firms. DealsPlus works with a number of industry-leading private equity firms and is backed by a private equity firm with $38B in AUM.
Venkat and I had a fascinating conversation about the challenges private equity firms face with managing and tracking transactions and portfolio companies. We discussed:
Why it’s been so hard to create a cap table management solution for private equity.Why it's much harder to build software for private equity firms than venture capital firms.How private markets can move from the Excel Age to the Digital Age.How to build software that provides a single source of truth.The atomic unit of value in private markets.Building an end-to-end platform versus building a point solution.What’s next in post-investment ops tech innovation?Thanks Venkat for coming on the show to share your thoughts and wisdom on private markets tech.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and message from Ultimus
01:59 Introducing Venkat Subramaniam and DealsPlus
03:57 Venkat's Career Journey
05:07 The Genesis of DealsPlus
05:09 Challenges in Transaction Management
06:25 The Lack of Uniformity in Private Equity Processes
06:54 The Impact of Technology on Private Equity
07:33 The Role of Cloud Computing
08:24 The Consumerization of Enterprise Software
09:04 Excel vs. Specialized Software
09:34 The Importance of Cap Table Management
10:04 Connecting Front Office and Back Office
10:30 Building Effective Software Solutions
13:24 Recurring Pain Points in Private Equity
14:47 The Complexity of Private Equity Cap Tables
15:44 Building a Platform for Private Equity
16:43 Stakeholder Management in Private Equity
18:50 Impact of Technology on Fund Operations
20:25 Integrating DealsPlus into Workflows
21:06 Best-in-Class Applications and Data Integration
23:33 The Impact of Fund Size on Complexity
25:42 Technology Adoption in Private Equity
27:09 Network Effects in Private Equity Technology
37:41 The Future of Private Markets Technology
39:14 Conclusion and Closing Remarks
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with a founder who is building mission-critical valuation and portfolio monitoring software for alternative asset managers.
We are joined by Yann Magnan, the Co-Founder and CEO of 73 Strings, to discuss how valuation work and portfolio monitoring is moving from manual to automated and why that’s so important for the industry. 73 Strings has leveraged AI and automation to more seamlessly and cost-effectively extract data, monitor portfolios, and streamline middle-office processes for valuations. 73 Strings works with a number of the industry’s top alternative asset managers and has received investment from Blackstone, Fidelity International Strategic Ventures, and Broadhaven Ventures, amongst others.
Yann has brought his experience as a senior member of the Duff & Phelps team, where he was EMEA Market Leader and member of the Global Operating Committee and as a Partner at EY’s Transaction Advisory Services to help bring valuation and portfolio monitoring solutions into the mainstream.
Yann and I had a fascinating conversation about how technology innovation is impacting private markets. We discussed:
The challenges with manual valuation services businesses.How to create uniformity and standardization with private markets fund performance data.How AI is changing private markets post-investment reporting processes.Does automation in private markets help big funds or small funds more?The evolution of post-investment private markets market structure.The biggest technology innovation still missing from private markets.Why the growth of the wealth channel and evergreen funds increases the need for more streamlined reporting and valuation solutions.Thanks Yann for coming on the show to share your views and wisdom on private markets.
A word from AGM podcast sponsor, Ultimus Fund SolutionsThis episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and Sponsor Message
01:56 Welcome to Alt Goes Mainstream
02:05 Introducing Yann Magnan and 73 Strings
03:56 Yann's Background in Valuation Services
04:33 The Inefficiencies of Manual Valuation
05:20 The Genesis of 73 Strings
06:11 The Importance of Experience in Private Markets
06:24 Automating Valuation Processes
08:32 Challenges in Standardizing Valuation
09:13 The Role of Human Judgment in Valuation
10:24 AI's Potential in Valuation
11:10 Accountability in Automated Valuation
12:47 73 Strings' Data Handling and Partnerships
14:07 Standardizing Data Across Portfolios
15:44 Impact of Automation on Human Processes
17:02 Growth of the Wealth Channel and Evergreen Funds
17:59 Accelerating Need for Better Valuation Software
19:37 Challenges of High-Frequency Reporting
19:59 Technological Implications of Daily Valuation
20:31 Private Assets and Technology Infrastructure
20:44 Industry Resilience and Smart People
20:59 Forefront Firms and Blackstone Partnership
21:48 Valuation Process and Data Control
23:11 Extensibility to Other Asset Classes
24:12 73 Strings' Versatile Platform
25:13 Howard Marks on Asset Allocation
25:52 Atomic Unit of Value in Valuations
27:31 Data Sharing Across Business Units
30:24 Automation Benefits for Large and Small Firms
31:33 Building Technology for Large Firms
34:16 Trust and Experience in Client Relationships
35:09 Strategic Investors and Their Value
37:37 Industry Participation and Standardization
39:13 Maturity and Cost of Technology
40:22 Future of Data in Private Markets
41:39 Convergence of Private and Public Markets
42:11 Volatility and Transparency in Private Markets
43:14 Attracting Retail Investors
44:41 Conclusion and Final Thought
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Welcome to the 14th episode of the Monthly Alts Pulse, a collaboration between iCapital x Alt Goes Mainstream.
Here’s the latest episode of the Monthly Alts Pulse, a live conversation in studio with Lawrence Calcano, the Chairman & CEO of iCapital. As the leader of a platform with over $200B of assets that is responsible for the majority of individual and advisor-led investment flows into the alts space, Lawrence and iCapital have their finger on the pulse of what’s happening in private markets.
Has private markets moved from access as table stakes to customization and differentiation?What are the different phases of private markets — and how has iCapital built solutions for each?Is data the oil for private markets?How will model portfolios fit into the wealth channel’s adoption of private markets?If advisors now have access to private markets, how do they differentiate?How does the trend of OCIOs being acquired by wealth managers factor into the continued evolution of wealth channel adoption of private markets?The nuances of diligence on fund managers.Why do private markets “start and stop at the advisor’s desktop?”What's the interplay between brand, access, and customization?
On this episode, Lawrence and I had a fascinating and lively discussion. We covered:Thanks Lawrence for a great episode … looking forward to next month’s conversation!
Show Notes
00:00 Introduction00:23 Trends in Wealth Management: Customization and Differentiation
00:46 The Evolution of Private Markets Access
01:28 Building Bespoke Programs for Advisors
01:50 The Importance of Better Fit for Clients
02:26 Infrastructure and Customization in Wealth Channels
02:39 Phases of Evolution in Wealth Management
03:29 Expanding Product Access and Automation
03:49 Creating an Operating System for Wealth Management
04:30 The Role of Model Portfolios
04:56 The Role of Technology and Tools in Customization
05:21 Differentiation Through Custom Solutions
06:17 Understanding Customization in Wealth Markets
07:11 The Role of Diligence in Wealth Management
09:40 Reconciling Efficiency and Thoughtful Allocation
09:59 Advisors' Role in Customization and Differentiation
10:08 The Advisor's Role in Client Education
11:01 The Future of Secondary Markets and Evergreen Products
12:07 Tools for Advisors: Information and Fit
14:57 The Importance of Education and Technology
16:17 Product Innovation and Customization
19:23 Conclusion: Balancing Tensions in Wealth Management
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Everyone is talking about evergreens.
Alt Goes Mainstream has collaborated with iCapital and Co-Founder & Managing Partner, Head of Portfolio Management Nick Veronis to dive into the evergreen question with some of the leading practitioners in private markets.
This three part series with industry experts from Vista Equity Partners, KKR, and Hamilton Lane shines a light on one of the fastest-growing areas in private markets and its impact on the wealth channel.
The three part series features:
Vista Equity Partners Managing Director, Global Head of Private Wealth Solutions Dan Parant.KKR Managing Director, Head of Americas, Global Wealth Solutions (GWS) Doug Krupa.Hamilton Lane Managing Director, Co-Head US Private Wealth Solutions Stephanie Davis.Please enjoy the third episode of the series as Nick and I talk with Hamilton Lane's Stephanie Davis.
Show Notes
00:00 Introduction: Setting the Stage00:17 Early Days in the Evergreen Space
00:33 Stephanie's Journey into Private Wealth
00:40 From Merrill Lynch to Hamilton Lane
01:15 The Evolution of Alternative Investments
02:09 Success in Early Evergreen Structures
02:23 Challenges and Innovations in Distribution
03:01 Nick's Perspective on the Evergreen Space
03:20 Hamilton Lane's Thought Leadership
03:50 The Importance of Private Companies
04:29 The Evolution of Evergreen Funds
05:11 Optimal Structures for Evergreen Funds
05:35 Target Audience and Distribution Strategies
06:25 Commitment to Evergreen Structures
06:50 Multi-Manager Approach and Diversification
07:18 Adoption of Private Capital by Advisors
07:49 The Role of Private Equity in Evergreen Funds
08:50 The Importance of Fee Efficiency
09:45 Educating Investors on Evergreen Structures
15:00 The Power of Compounding in Evergreen Funds
16:02 Institutional Interest in Evergreen Funds
21:54 The Role of Liquidity in Evergreen Investments
22:28 Educating Advisors and Clients
25:48 Challenges in Advisor Education
28:14 Allocation Strategies for Evergreen Funds
31:22 The Future of Evergreen Structures
31:36 3.0 in the Evergreen Space
34:07 Manager Selection in Private Markets
35:18 The Evolving Relationship of Public and Private Markets
36:03 Closing Thoughts and Key Takeaways
36:33 Disclaimer and Informational Purposes
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Everyone is talking about evergreens.
Alt Goes Mainstream has collaborated with iCapital and Co-Founder & Managing Partner, Head of Portfolio Management Nick Veronis to dive into the evergreen question with some of the leading practitioners in private markets.
This three part series with industry experts from Vista Equity Partners, KKR, and Hamilton Lane shines a light on one of the fastest-growing areas in private markets and its impact on the wealth channel.
The three part series features:
Vista Equity Partners Managing Director, Global Head of Private Wealth Solutions Dan Parant.KKR Managing Director, Head of Americas, Global Wealth Solutions (GWS) Doug Krupa.Hamilton Lane Managing Director, Co-Head US Private Wealth Solutions Stephanie Davis.Please enjoy the second episode of the series as Nick and I talk with KKR's Doug Krupa.
Show Notes
00:23 Doug's Background in Private Markets01:18 Early Career as a Financial Advisor
01:55 Understanding Overfunded Pensions
02:47 Focus on Making Private Markets Accessible
03:12 Building Innovative Solutions at KKR
03:25 Evolution of Wealth and Asset Management
03:55 Challenges in Private Markets
05:05 Partnering with KKR
05:55 KKR's Commitment to the Wealth Channel
06:04 Innovations in Fund Structures
06:59 The Conglomerate Model
07:15 KKR's Approach to Wealth Channel
07:46 Expanding Access to Private Markets
08:34 Delivering the Same Investment Experience
09:36 Maslow's Hierarchy of Needs for Wealth Channel
09:59 Legislation and Access to Private Markets
12:56 Evergreen Structures vs. Conglomerate Model
17:37 Investor Behavior in Evergreen Structures
18:12 Adoption of Evergreen Strategies
21:24 Educating the Industry on Evergreen
22:55 The Shift from Public to Private Markets
24:00 KKR's Educational Initiatives
26:06 Rebranding Alternatives as Private Markets
28:53 Partnerships and Hybrid Solutions
29:04 Market Structure Evolutions
31:11 Future of Private Markets
32:32 Dominant Players in Private Markets
34:18 Rapid Adoption of Evergreen Strategies
34:59 Disruption in the Industry
35:18 Final Thoughts on Private Markets
38:58 Closing Remarks
39:06 Disclaimer and Legal Information
40:55 Copyright Information
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Everyone is talking about evergreens.
Alt Goes Mainstream has collaborated with iCapital and Co-Founder & Managing Partner, Head of Portfolio Management Nick Veronis to dive into the evergreen question with some of the leading practitioners in private markets.
This three part series with industry experts from Vista Equity Partners, KKR, and Hamilton Lane shines a light on one of the fastest-growing areas in private markets and its impact on the wealth channel.
The three part series features:
Vista Equity Partners Managing Director, Global Head of Private Wealth Solutions Dan Parant.KKR Managing Director, Head of Americas, Global Wealth Solutions (GWS) Doug Krupa.Hamilton Lane Managing Director, Co-Head US Private Wealth Solutions Stephanie Davis.Please enjoy the first episode of the series as Nick and I talk with Vista Equity Partners’ Dan Parant.
Show Notes
00:19 Welcome and Guest Introduction00:39 Vista's Founding and Early Days
02:05 Vista's Growth and Achievements
03:11 Dan's Background and Role at Vista
04:07 Enterprise Software Investment Thesis
05:11 The Resilience of Enterprise Software
07:11 The Private Market Advantage
07:25 Constructing Portfolios for Wealth Channels
08:13 The Shift from Public to Private Markets
09:52 Evergreen Funds and Their Benefits
11:06 Evergreen Strategies in Software Investing
12:01 Advantages of Evergreen Structures
13:09 The Role of Private Equity in Evergreen Funds
13:17 Private Companies Staying Private Longer
19:25 Vista's Approach to Different Company Sizes
20:28 Growth vs. Yield in Evergreen Strategies
21:11 The Importance of Scale in Evergreen Funds
24:24 Challenges of Managing Evergreen Structures
26:12 The Discipline of Manager Selection
28:41 Educating Investors on Evergreen Structures
30:08 Omnichannel Education Strategies
31:04 Product-Specific Education
32:00 Understanding Liquidity in Evergreen Funds
33:37 Structuring Liquidity Parameters
36:17 The Future of Evergreen Strategies
39:45 Closing Remarks and Final Thoughts
40:17 Legal & Compliance Information -
Welcome back to Going Public with Evercore’s Glenn Schorr.
On the latest episode of Going Public, we drop the beat on F.R.E.A.M.
Paying homage to Wu-Tang Clan’s song “C.R.E.A.M.” (“Cash rules everything around me”), Glenn discusses why “Fees rule everything around me” in asset management.
We cover some of last quarter's most pressing topics in alternative asset management, including:
How alternative asset managers balance fee generation with returns.Does major growth still lie ahead for alternative asset managers?Why “fees rule everything around me,” but so does alpha generation.Why does distribution (almost always) win in asset management?What’s the most valuable aspect of a publicly traded alts manager having a public currency?What is Glenn keeping his eye on for next quarter?Making private markets more public — with expert analysis
Alt Goes Mainstream has partnered with an expert who has seen the evolution of alternative asset managers from their early days.
Glenn Schorr is a Senior MD and Senior Research Analyst at Evercore ISI, where he covers brokers, banks, asset managers, and trust banks as an analyst.
He has covered financials since 2000 and started coverage of alternative asset managers when the first firms went public.
He’s consistently come up as one of the most thoughtful and well-respected analysts in the space. He balances deep research with a creative flair (just read one of the titles of his research reports and you can see his love of the game). He’s been named to Institutional Investor’s All-America Research Team for his coverage, most recently ranking #2 and runner up in 2023, #1 and #2 in 2022. Prior to Evercore, Glenn was a Senior MD at Nomura, serving as the lead financials analyst.
Listen in as Glenn shares market stories, the evolution of alternative asset managers as businesses, the biggest and most exciting trends in private markets based on what the industry’s largest players are doing, and we go “around the horn” for his analysis on the publicly traded firms.
Show Notes
00:00 Introduction
00:38 Meet Glenn Schorr
01:52 Wu-Tang Clan and Asset Management
02:40 F.R.E.A.M.: Fees Rule Everything Around Me
02:49 Public Investors and Revenue Streams
03:47 Balancing Fee Growth and Investment Returns
05:50 Talent Migration and Fee Justification
06:38 Migration to Private Markets
07:07 Deregulation and Its Impact
09:31 Structural Challenges for Banks
09:58 Growth in Alternative Asset Management
12:19 Wealth Channel and Private Markets
13:13 Private Equity Performance
15:37 Education Process for Investors
16:27 Perpetual Private Equity Products
17:35 Model Portfolios: The Next Frontier
21:00 Distribution and Asset Management
24:24 Corporate Strategy and Partnerships in Asset Management
27:10 Public vs. Private Firms
29:56 Acquisitions and Growth Strategies
31:09 Specialty Managers and Market Trends
33:12 Big TAMs and Investment Opportunities
36:15 Consolidation in the Industry
38:16 Surprises and Trends in the Quarter
39:44 Deployment and Investment Grade Private Credit
40:03 Credit Cycles and Market Concerns
41:15 Data Centers and AI Investments
41:54 Size and Scale in Asset Management
45:19 Bank and Asset Manager Partnerships
46:15 Looking Ahead: Thoughts on the Next Quarter
47:10 Conclusion and Final Thoughts
Company Coverage and Disclosures
Evercore ISI
Glenn Schorr
| Ticker | Company
| APO | Apollo Global Management, Inc.
| BAC | Bank of America Corporation
| Glenn Schorr holds a long position in equity securities of Bank of America Corporation.
| BK | Bank of New York Mellon Corp.
| Glenn Schorr holds a long position in equity securities of Bank of New York Mellon Corp.
| BLK | BlackRock, Inc.
| BlackRock, Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to BlackRock, Inc. in the last 12 months.
| Evercore ISI or an affiliate expects to receive or intends to seek compensation for investment banking services from BlackRock, Inc. within the next three months.
| Glenn Schorr holds a long position in equity securities of Blackrock Inc.
| BX | Blackstone, Inc.
| Blackstone, Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Blackstone, Inc. in the last 12 months.
| Evercore ISI or an affiliate expects to receive or intends to seek compensation for investment banking services from Blackstone, Inc. within the next three months.
| An employee, employee's immediate family member, director or consultant of Evercore ISI or one of its affiliates (but not the covering research analyst or a member of the covering research analyst's household) is an officer, director or advisory board member of Blackstone, Inc.
| Evercore ISI or an affiliate has received compensation from Blackstone, Inc. for investment banking services in the last 12 months.
| Analyst has a financial interest in a private equity fund managed by Blackstone, Inc.
| Glenn Schorr holds a long position in equity securities of Blackstone, Inc.
| OWL | Blue Owl Capital, Inc
| Evercore ISI or an affiliate has acted as a manager or co-manager of a public offering of securities by Blue Owl Capital, Inc in the last 12 months.
| Blue Owl Capital, Inc is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Blue Owl Capital, Inc in the last 12 months.
| Evercore ISI or an affiliate has received compensation from Blue Owl Capital, Inc for investment banking services in the last 12 months.
| BSIG | BrightSphere Investment
| C | Citigroup, Inc.
| An employee, employee's immediate family member, director or consultant of Evercore ISI or one of its affiliates (but not the covering research analyst or a member of the covering research analyst's household) is an officer, director or advisory board member of Citigroup, Inc.
| Glenn Schorr holds a long position in equity securities of Citigroup, Inc.
| BEN | Franklin Resources, Inc.
| Glenn Schorr holds a long position in equity securities of Franklin Resources, Inc.
| GS | Goldman Sachs Group Inc.
| IVZ | Invesco Ltd.
| JPM | JPMorgan Chase & Co.
| Glenn Schorr holds a long position in equity securities of JPMorgan Chase & Co.
| KKR | KKR & Co. Inc.
| KKR & Co. Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to KKR & Co. Inc. in the last 12 months.
| Evercore ISI or an affiliate has received comp... -
Welcome back to the Alt Goes Mainstream podcast.
Today’s guest is an expert in financial services and capital markets who has experience as both a strategic investor and a VC.
We welcome Rana Yared, a General Partner at Balderton, where she co-leads their Growth Fund. She came to Balderton in 2020 from across the pond, where she was a Partner at Goldman Sachs, first in the Principal Strategic Investments Group, a balance sheet investing team, and later in GS Growth, when the group became part of the GS Growth efforts that began to take in outside LP capital. At Goldman, Rana oversaw investments in Financial Technology and Enterprise Technology as well as the commercialization of Goldman’s technology assets in both NYC and London. She represented Goldman on the boards of Tradeweb, NAV, Vestwell, New York Shipping Exchange, and Swapclear @ LCH. She currently serves on the board of Tradeweb in an independent capacity.
Coming off of a fundraise of $1.3B in new capital across early and growth stage funds at Balderton, Rana and I discussed what LPs were interested in and why Europe is a compelling investment ecosystem. We had a fascinating discussion about:
Revolutionary and evolutionary innovations in financial services and private markets, including the likes of iCapital, Tradeweb, Revolut.Why global tech companies can be built in Europe, with Revolut, a Balderton portfolio company, as an example.Why London and Europe are compelling fintech and financial services ecosystems.How LPs should look at the European investment opportunity.Differences and benefits / drawbacks of being a strategic / permanent capital investor versus being an independent VC fund.The importance of being a risk manager in venture.Thanks Rana for coming on the show to share your wisdom and views on Europe, venture, and private markets. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and Ultimus Sponsor Message
01:59 Introducing Balderton Capital Partner, Rana Yared
04:16 Rana's Journey from Goldman Sachs to Balderton
04:25 Transition from Investment Banking to VC
06:26 Insights on Financial Services and Market Structure
06:37 Investing in Market Structure
09:05 Disruptive vs. Evolutionary Innovations in Fintech
12:53 Partnering with Incumbents
14:31 The Importance of Durability and Product Velocity
18:11 Strategic Investing vs. Venture Capital
21:21 Investing in the European Ecosystem
27:06 The Exciting Potential of Revolut and European FinTech
27:21 FinTech Giants in Germany
27:54 European Companies' International Advantage
28:55 Investor's Perspective on European Expansion
29:48 The Role of Venture Capital in Europe
29:22 Challenges and Strategies for European Investors
30:20 The Importance of Local Presence
30:55 The Future of European Ecosystems
31:28 US VCs Entering Europe
32:15 Bridging the Talent Gap
34:02 Mentorship and Expertise
35:52 The Role of LPs and European Investment Opportunities
37:23 Challenges for European Pensions and Endowments
38:49 Innovations in Fund Structures
41:27 The Impact of Governmental Participation in Venture
42:22 Exciting Opportunities in European Venture
43:10 FinTech's Massive Potential
43:59 Europe's Unique Financial Services Advantages
44:53 Geopolitical Concerns for Investors
45:51 Lessons from War Studies Applied to Investing
47:11 The Future of Retirement Investments in Europe
49:13 The Importance of Patience in Investing
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Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with someone who has experienced the growth and evolution of the credit space from different vantage points.
We welcome Alona Gornick, a Managing Director, Senior Investment Strategist, and Co-Head of the Chicago Office for Churchill Asset Management, a firm with $50B committed capital that is a provider of financing solutions to middle market private equity firms and their portfolio companies. Churchill is an investment-specialist affiliate of Nuveen, the asset manager of TIAA.
Alona provides investment insights across the private capital spectrum to the investment community – and has a particular focus on working with the Private Wealth and Retail channels. She works closely with Nuveen’s global distribution team to deepen relationships with and educate Churchill’s investors and partners.
Alona leverages her experience in capital markets, investor relations, and credit investing from working at the likes of Nuveen, Golden Gate Capital, and Oaktree Capital Management.
Alona and I had a fascinating conversation. We discussed:
The evolution of credit investing.The opportunities and risks in private credit. Are we in a private credit bubble?Why the product specialist role is critical for working with the wealth channel.The power of scale, particularly in private credit, and how it helps alternative asset managers win deals and invest.The strategic benefit of platforms and permanent capital.Thanks Alona for coming on the show to share your views and wisdom on private markets. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction to Ultimus Fund Solutions
01:18 Welcome to the Podcast
02:00 Guest Introduction: Alona Gornick
03:45 Alona's Career Path and Experience
06:59 Growth of Middle Market Direct Lending
07:41 Changes in the Credit Landscape
10:21 The Importance of Size and Scale in Private Credit
13:27 Deal Structuring and Market Evolution
14:46 Impact of High Rate Environment
16:06 Private Credit Returns and Underwriting
20:53 Investor Questions and Market Insights
21:24 Educating Investors on Private Credit
23:43 Private Credit in Wealth Portfolios
24:09 Diversification Benefits of Private Credit
24:24 Yield Premium in Private Credit
26:40 Private Credit vs. Private Equity
27:06 Exploring Private Equity and Private Debt
27:24 Transitioning from Public to Private Credit
27:49 The Role of a Product Specialist
28:09 Balancing Risks and Benefits
28:49 Relating to Advisors with Real Examples
29:40 The Importance of Education in Allocation
30:25 Diverse Viewpoints on Alternative Asset Managers
31:48 Challenges in Access to Capital
33:26 The Significance of Hiring Quality People
34:12 Non-Traditional Backgrounds in Specialist Roles
36:29 Patience and Commitment in Educating Investors
39:13 The Hardest Part of Educating the Wealth Channel
40:47 The Role of Structure in Education
44:21 Concerns About the Future of Private Credit
47:00 The Growth Potential of Private Credit
49:38 The Most Interesting Alternative Investment
50:15 The Opportunity in Private Equity Secondaries
52:47 Private Credit Secondaries: A Nascent Space
54:17 Primary and Secondary Considerations in Credit
54:34 Conclusion and Final Thoughts
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Today marks the launch of a new show on Alt Goes Mainstream: What’s Your Edge?
Every person, every company, every fund has something that makes them special.
Makes them stand out from the crowd.
Gives them an unfair advantage.
Tips the scales in favor of success.
In this episode, I ask our special guest, Bob Long, “What’s Your Edge?”
Bob Long is CEO of StepStone Group’s Stepstone Private Wealth. He has three decades of experience in the private markets and has led investment teams for global firms in both the general partner and the limited partner role. He has served as the CEO of two publicly-traded companies focused on expanding private market access for high net worth investors.
Prior to StepStone Private Wealth, Bob was the CEO of OHA Investment Corporation, a publicly-traded specialty finance company. Previously, he co-founded Conversus Capital, the largest publicly traded fund of third-party private equity funds with $3 billion of AUM and served as its CEO. Previously, he led Bank of America’s $7 billion strategic capital division. Early in his career, Bob served as the lead in-house counsel for a large portion of Bank of America’s Investment Banking Division and worked as a securities lawyer for a major law firm.
A recognized industry leader, Bob was named one of 50 “GameChangers” by Private Equity International, has been profiled in the WSJ, and hosted CNBC Squawk Box Europe on numerous occasions.
On today’s podcast, Bob and I discuss the nuances of evergreen funds and the unique features and offerings of StepStone Private Wealth’s evergreen strategies.
Thanks Bob for coming on the show to share your wisdom, experience, and your edge.
Show Notes
00:00 Introduction00:38 Welcome to What's Your Edge?
01:01 Meet StepStone Private Wealth CEO Bob Long: A Leader in Private Markets
03:09 Lessons from Public Markets
04:34 Evergreen Fund Structure
05:27 Benefits of Evergreen Funds
06:25 Immediate Investment Advantage
07:20 Evergreen Funds and Financial Advisors
07:35 Evergreen Fund Liquidity
08:04 StepStone's Approach to Evergreen Funds
09:09 StepStone's Strategy and Structure
09:32 Balancing Inflows and Outflows
10:34 Importance of Deal Flow
11:04 Balancing Liquidity and Returns
11:56 StepStone's Competitive Advantage
13:52 Portfolio Construction
14:57 Diversification in Private Markets
16:06 Evergreen Fund Structures
19:44 Liquidity in Private Markets
27:57 Key Takeaways for Investors
29:53 Operational Due Diligence Essentials
30:13 Key Questions for Evergreen Fund Structures
30:36 Understanding Fee Structures
30:42 Management Fees and Leverage
31:33 Incentive Fees Explained
32:19 Administrative Costs and Transparency
32:34 Fee Compression in Evergreen Funds
34:11 Portfolio Construction Strategies
34:24 Investing in Secondaries
37:10 Psychology of Allocators
38:04 Accessibility and Minimum Investments
38:43 Investor Profiles and Strategies
40:36 Transparency and Performance
41:40 Rebalancing and Evergreen Funds
43:10 Model Portfolios and Private Markets
45:19 StepStone's Investor-Centric Approach
46:15 StepStone's Competitive Edge
48:31 Growth of Secondaries and Private Markets
51:37 Future Trends in Private Markets
55:30 Philanthropy and Purposeful Stewardship
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Welcome back to the Alt Goes Mainstream podcast.
Today’s show features a guest who brings a wealth of common sense to wealth management and asset allocation.
We talk with Ben Carlson, the Director of Institutional Asset Management at Ritholtz Wealth Management, a $5B AUM wealth management firm. He’s managed institutional portfolios for his entire career. He started out with an institutional investment consulting firm, where he deployed portfolio strategies and created investment plans for foundations, endowments, pensions, hospitals, insurance companies, and HNW individuals. More recently, he was part of the portfolio management team for an investment office that managed a large endowment fund for a charitable organization.
Ben is a student of markets and asset allocation, which is clear from the knowledge he shares daily and weekly with his blog, A Wealth of Common Sense, and his podcast Animal Spirits with Michael Batnick and Ben Carlson. He’s also authored four books about saving, investing, and money. He was named to the Investment News 40 Under 40 list of top financial advisors in 2017.
Ben and I had a fascinating conversation about the adoption of alternatives in the wealth channel and the whys and hows of asset allocation. We discussed:
Why asset allocation is the most important aspect of an investment plan.The question of whether or not investors now have too much choice?Why Ben documents every investment decision he makes.The benefits of private markets and the pitfalls of private markets.His biggest lesson learned in investing.Why crypto has helped younger investors become more comfortable with volatility (for better or worse).The future of wealth management and what won’t change about the advisor / client relationship.The power of content creation and how it helps him approach investing.Thanks Ben for coming on the show to share your wisdom and experience in investing and asset allocation. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Sponsor: Introduction to Ultimus Fund Solutions01:56 Meet Ben Carlson: Wealth Management Expert
02:17 Ben Carlson's Career Journey
02:55 Insights on Asset Allocation
03:11 The Importance of Documenting Investment Decisions
03:14 Private Markets: Benefits and Pitfalls
04:34 Early Career Lessons
04:58 Asset Allocation Strategies
06:06 Navigating Investment Choices
07:10 The Complexity of Investment Strategies
09:46 Institutional vs. Wealth Management
10:19 Communication in Institutional Investing
12:35 The 60/40 Portfolio Debate
23:20 Advisors and Alternatives
27:17 Thresholds for Investing
27:48 Differentiating Through Culture
28:41 Defining and Evaluating Culture
29:20 Transparency and Client Relationships
29:57 Partnering with the Right Clients
30:19 Qualitative Manager Selection
31:53 Content Creation and Transparency
34:22 Building a Brand from Scratch
37:49 Advice for Young Advisors
39:31 Compounding in Private Markets
40:06 Behavioral Benefits of Private Markets
41:17 Excitement in Private Markets
41:56 Evolving Fund Structures
42:28 Defining Alternatives
43:48 Younger Investors and Volatility
46:55 Future of Wealth Management
47:53 Private Equity in Wealth Management
48:58 Favorite Alternative Investments
51:44 Conclusion and Final Thoughts
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Welcome back to the Alt Goes Mainstream podcast.
Today’s podcast illustrates just how far private markets have come. We dive into the world of GP stakes with Sean Ward, Senior Managing Director from Blue Owl’s GP Strategic Capital Platform, where he was a founding partner and is responsible for helping to oversee the firm that has done the lion’s share of GP stakes investing.
Blue Owl’s GP Strategic Capital business, which started out as Dyal Capital Partners, has accounted for over 61% of the total capital raised in the GP stakes space, closing on over $33.3B across their 7 funds and managing $57.8B AUM. They’ve taken minority ownership stakes in many of the industry’s leading alternative asset managers, accounting for 85%+ of all GP stakes deals $600M or greater in size.
Sean is a Senior Managing Director of Blue Owl Capital, Inc. and a member of the firm’s Board of Directors. He also serves as a member of the GP Strategic Capital Investment Team. Prior to joining Dyal Capital Partners, the predecessor firm to Blue Owl’s GP Strategic Capital platform, Sean was a Vice President at Lehman Brothers and held several roles at Neuberger Berman after it became an independent firm, including Senior Counsel for Neuberger’s alternatives business. Sean was also a lawyer at Covington & Burling LLP and Davis Polk & Wardwell LLP.
Sean and I had a fascinating conversation about the evolution of private markets through the parallel evolution of the GP stakes space. We discussed:
The early days of the GP stakes industry.What it was like to convince GPs and LPs why stakes made sense.How the $1B GP commitment by Bain Capital in their fund post-GFC really opened everyone’s eyes to the need to tap into financing as firms grew their fund size and their business.A “cash in” rather than a “cash out.” Why GP stakes investing is mainly about positive selection since managers are choosing to sell a stake in their business.How alternative asset management has evolved as a business.How GP stakes investments have elements of bond-like coupons from cashflows due to management fees and option value from the upside of carry.Why GP stakes investments are “the most diversified single line item investment one can make in private markets.”Where allocators bucket GP stakes investments.What makes a great GP stakes investor.The power of permanent capital.The different paths to liquidity in GP stakes investments.Thanks Sean for coming on the show to share your views and wisdom on private markets. We hope you enjoy.
A word from AGM podcast sponsor, Ultimus Fund Solutions
This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.
To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.
Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].
We thank Ultimus for their support of alts going mainstream.
Show Notes
00:00 Introduction and Sponsor Message
01:17 Podcast Opening and Theme
02:00 Guest Introduction: Sean Ward from Blue Owl GP Strategic Capital
04:21 Sean Ward's Career Journey
05:14 The Evolution of GP Stakes Investing
06:23 The Start of GP Stakes at Blue Owl
06:57 Raising the First Fund
07:09 The Growth of Blue Owl's GP Stakes
07:31 The Importance of Legal Background in GP Stakes
09:48 Convincing LPs and GPs
11:14 The Importance of GP Commitments
15:23 Strategic Value Beyond Capital
24:45 Succession Planning in Private Equity
26:02 Impact of Market Conditions on GP Stakes
29:26 Underwriting and Returns in GP Stakes
36:33 Cash Flow and Diversification in GP Stakes Investments
37:48 Understanding the Trade-offs in GP Stakes Investing
38:35 Narrow Distribution of Potential Outcomes
40:09 The Importance of Diverse Professional Backgrounds
40:45 Collaborative Partnerships in GP Stakes
41:34 Traits of a Great Alternative Asset Manager
43:49 The Next Frontier: Private Wealth
45:13 Middle Market Strategy and Partnerships
49:34 The Evolution and Future of Private Markets
53:19 Liquidity in GP Stakes Investments
58:26 The Power of Permanent Capital
01:00:28 Is GP Stakes Better Than SaaS?
01:02:43 Exemplary Models for Growth in Asset Management
01:05:47 Conclusion and Final Thoughts
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