Alt Goes Mainstream

I went into The Compound and came out alive.

Recently, I joined Michael Batnick and Ben Carlson of Ritholtz Wealth Management on their Animal Spirits podcast by The Compound. It is a fantastic show that produces frank and thoughtful conversations on markets and the wealth management world. They invited me on their show to discuss why alts are going mainstream.

We had a great conversation on the animal spirits of alts and we unpacked the opportunities and challenges ahead for private markets, wealth managers, and the alternative asset managers looking to work with the wealth channel.

We covered:

* Why I don’t like the term “downstreaming of alts.”

* The size and scale of the opportunity with the wealth channel.

* Why and how it can make sense for the wealth channel to allocate to alts.

* The changing nature of asset allocation from slices of a pie to buckets and spectrums.

* The concept of liquidity.

* The attractiveness of evergreen funds for both GPs and LPs.

* Are private markets in a bubble?

* Why GP stakes are a compelling investment opportunity given structural trends in private markets.

* Can private markets be indexed (and should they be)?

Thanks Michael and Ben for having me on the show. Really enjoyed the conversation and it was a pleasure to join you.

Michael and Ben are fantastic and thoughtful asset allocators and commentators in investing and wealth management. If you don’t already listen to their podcast or read their commentary on markets, you can check out their blogs below:

Michael Batnick’s The Irrelevant Investor.

Ben Carlson’s A Wealth of Common Sense.

Join over 5,800 thought leaders from top private markets firms like Blackstone, Apollo, Goldman Sachs, Ares, KKR, Carlyle, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

On today’s episode, we are joined by Mercer Investments’ US Financial Intermediaries Leader Gregg Sommer and CAIS’ MD and Head of Investments Neil Blundell.

Gregg and Neil bring deep experience and backgrounds in private markets to discuss how alternatives can be further adopted by the wealth channel.

Gregg is Mercer’s US Financial Intermediaries Leader, serving US wealth management and family office clients. He is a member of Mercer’s Wealth Leadership Team, Wealth Management Strategic Research and Investment Committees, and the Investment Policy Committee. He joined Mercer’s Investments business in 2009 and is based in Denver. Gregg began his career at U.S. Trust and over the last 35 years has held several executive positions in the investment industry. He has a comprehensive investment, business, and risk management background and has managed many successful investment teams focused on risk assessment, asset allocation, due diligence, portfolio management, organizational evaluation, and financial analysis across both private and public investment strategies. Gregg served as Chief Financial and Operating Officer of a firm that managed real estate and private equity and debt portfolios and has been a Principal and Portfolio Risk Officer for RCM, a Commodity Trading Advisor. Additionally, he was a founding Partner at Global Trading Partners, a trading firm focused on global market relationships.

Neil brings over 20 years of experience in private markets to CAIS. He recently worked at Invesco as the Global Head of Client Solutions and Alternatives for the Investment Solutions team. He was responsible for developing and managing over $90B in customized multi-asset investment strategies spanning both traditional and alternative solutions and was a member of the team’s executive committee, investment committee, and chair of the alternative investment committee. Prior to Invesco, Neil was at BlackRock for 10+ years, where he was most recently Managing Director and Alternatives Platform Head within the Institutional Client Business.

Gregg, Neil, and I had a fascinating discussion about how the wealth channel can approach alternatives and how they can think about both diligence and customization. We covered:

* The case for alternatives.

* How advisors currently approach alternatives and how they can think about it differently going forward.

* How to think about portfolio construction that includes alternatives.

* How alts can help advisors differentiate their practice and attract clients.

* Following the fast river in a career and why alternatives are “the fast river.”

* The meaning of “structure over strategy.”

* The rise in popularity of evergreen funds.

Thanks Gregg and Neil for coming on the show to share your views and experience in 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.

Clip #1: How are advisors allocating to alts?

Clip #2: How much does brand matter in private markets?

Clip #3: What are advisors worried about in private markets?

Clip #4: What goes into evaluating alternatives managers?

Show Notes

00:00 Introduction to Sponsor, Ultimus Fund Solutions

01:17 Podcast Opening and Guest Introduction

01:58 Guest Backgrounds and Career Highlights

03:43 Discussion on Wealth Channel and Alternatives

03:51 The Case for Alternatives

07:47 The Evolution of Private Debt

08:23 The Moment It Clicked for Alts

12:08 Institutional vs. Wealth Channel Approaches

13:54 Educating the Wealth Channel

15:47 Evergreen Funds and Wealth Channel

19:29 Generational Wealth Transfer

20:04 Current Market Trends and Private Markets

25:29 Importance of Due Diligence in Alternatives

26:33 Advisor Allocation Trends

26:53 Expected Allocations in the Next Year

27:07 Private Equity and Credit Insights

27:17 Real Estate and Hedge Funds Outlook

27:27 Emerging Infrastructure Strategies

27:47 CAIS Platform Overview

28:17 Transactional Volume Trends

28:36 Registered Funds Growth

29:30 Institutional vs. Wealth Channel Behavior

30:25 Customization in Private Markets

31:22 Technology's Role in Wealth Management

35:52 The Importance of Brand in Investments

39:26 Strategic Partnerships in Wealth Management

39:56 Concerns About Private Markets Growth

43:36 Evaluating Manager's Edge

45:54 Future of Alternative Investments

Disclosure

This content is for institutional investors and for information purposes only. It does not contain investment, financial, legal, tax or any other advice and should not be relied upon for this purpose. The materials are not tailored to your particular personal and/or financial situation. If you require advice based on your specific circumstances, you should contact a professional adviser. Opinions expressed are those of the speakers as of the date of the recording, are subject to change without notice and do not necessarily reflect Mercer’s opinions.

Join over 5,600 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features a guest who has consistently and astutely figured out the growth areas in private markets.

We are joined by Manulife’s new Global Head of Private Markets Anne Valentine Andrews. She’s responsible for the strategy, business development, and growth of Manulife Investment Management’s private markets business. Manulife has a platform that spans real estate, infrastructure, timber, agriculture, private equity, and credit.

Anne has a comprehensive and informed purview of both private markets trends and of the different asset classes. She brings together the CIOs from each asset class in the Manulife business and works with the global product group to drive private markets product innovation across the institutional, retail, and retirement channels.

Anne has a wealth of experience in private markets and in infrastructure in particular. She joined Manulife from BlackRock, where she was most recently Global Head of Infrastructure and Real Estate. Previously, she was Co-Head and Chief Operating Officer for the Morgan Stanley infrastructure platform and was a Director at Macquarie Bank.

Anne and I had a fascinating conversation about the evolution of private markets and how to build out a private markets investment platform and its brand. We discussed:

* How to approach building a private markets investment platform at an industry behemoth.

* Why culture matters at an investment firm.

* The continued consolidation of alternative asset managers.

* What it means to connect real assets with real money.

* How to build a brand and educate investors.

* How to bring private markets investment opportunities into retirement accounts.

* The opportunity in infrastructure investing.

Thanks Anne for coming on the show to share your experience 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.

Clip #1: How infrastructure has “become a real allocation in investors’ portfolios.”

Clip #2: Building a comprehensive private markets investment platform at Manulife.

Clip #3: Connecting real assets to real money and building the world that we live in.

Show Notes

00:00 Introduction and Sponsor Message from Ultimus Fund Solutions

01:18 Podcast Opening and Guest Introduction

03:39 Anne Valentine Andrews' Career Journey

04:42 Evolution of the Infrastructure Investments

05:41 Infrastructure’s Resilience and Growth

06:27 Building a Private Markets Platform

14:28 Challenges and Strategies in Making Acquisitions

17:12 Evaluating Culture and Integration in Asset Management

18:47 Building a Comprehensive Platform

20:20 Educating Investors and Expanding Access

23:29 Future of Alternatives in Retirement Accounts

26:43 Platformization of Alternatives

28:01 Building and Marketing a Trustworthy Brand in Financial Services

29:30 Learning from Other Industries: Amazon's Influence

31:15 The Evolution of Asset Management

31:57 Adapting to Market Changes and Mega Trends

33:34 The Importance of Long-Term Investment Strategies

34:33 Decarbonization and Natural Capital

35:32 The Importance of Long-Term Thinking

40:02 Connecting Real Assets to Real Money

45:42 Risks and Opportunities in Infrastructure Investment

48:03 The Role of Scale in Private Markets in Infrastructure

49:21 Future of Alternative Investments

The views and opinions expressed in this podcast are those of the speakers, are subject to change as market and other conditions warrant, and do not constitute investment advice or a recommendation regarding any specific product or security. There is no guarantee that the investment strategy discussed will be successful or achieve any particular level of results. Any economic or market performance information is historical and is not indicative of future results, and no forecasts are guaranteed. Investing involves risks, including the potential loss of principal.

Financial markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person.

All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment or legal advice. Clients and prospects should seek professional advice for their particular situation. Neither Manulife Investment Management, nor any of its affiliates or representatives (collectively “Manulife Investment Management”) is providing tax, investment or legal advice. 

Manulife Investment Management paper titled U.S. farmland investment returns: continued gains in 2022; 5/19/23. NCREIF collects U.S. farmland property-level performance realized by institutional investments and reports the aggregated results within its Farmland Property Index (FPI). Manulife Investment Management is a participating member in the FPI. The index requires participating managers to report all eligible properties. Usage of this data is not an offer to buy or sell properties.

Manulife, Manulife Investment Management, Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

Manulife IM’s largest natural capital manager in the world ranking is from IPE research, as of February 2024 based on total natural capital assets under management (AUM), which includes forestry/timberland and agriculture/farmland AUM.

Join over 5,500 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is one of evergreen importance. We talk with one of the pioneers in the evergreen fund space.

Rob Collins, a Partner, Co-Head of Private Wealth, and Head of the New York office and a member of the Global Executive Board at Partners Group, a $147B+ AUM alternative asset manager, joins the podcast to discuss how Partners Group started the evergreen fund space in the early 2000s.

Rob has deeply evolved perspectives on both evergreen funds and working with the wealth channel. He leads Partners Group’s US private wealth and defined contribution practice and is President, Portfolio Manager, and Member of the Board of Managers of Partners Group Private Equity (Master Fund), LLC. He also chairs Partners Group USA’s Investment Committee. He joined the firm in 2005, only 4 years after Partners Group was the first firm to launch an evergreen private equity structure.

Rob and I had a fascinating conversation about what evergreen funds are, the mechanics of how they work, and why they can make sense for investors — both individual and institutions. We discussed:

* What Partners Group saw in the early 2000s that made them decide to create the evergreen private equity fund structure.

* Why it’s taken the industry time to adopt evergreen funds.

* How to think about returns with evergreen funds.

* Why institutions — in addition to wealth advisors — have used evergreen funds.

* Why the time, money, and liability questions of private equity fund investments make evergreens a fit for many advisors.

* The importance of compounding and how it relates to evergreen funds.

* The challenges and nuances with managing evergreen funds.

* Why “life is too short for capital calls.”

* How does private equity go from being sold to being bought?

* What can the industry  do to continue to remove pain points for the wealth channel?

Thanks Rob for coming on the show to share your thoughts and wisdom on private markets and the importance of one of the biggest trends in private markets, evergreen funds. 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.

Clip #1: It’s “an infinite responsibility.”

Clip #2: Why is the evergreen structure incredibly powerful for the mass affluent investor?

Clip #3: What are the right characteristics of a top distribution professional for the wealth channel?

Show Notes

00:00 Introduction to Ultimus Fund Solutions

01:18 Podcast Opening and Theme Song

01:52 Welcome to Alt Goes Mainstream

01:59 Introducing Rob Collins and Evergreen Funds

02:24 Rob Collins' Background and Role at Partners Group

04:18 Growth and Innovation at Partners Group

05:46 Evergreen Solutions for Clients

07:02 The Importance of Flexibility in Evergreen Funds

09:56 Evergreen Funds vs. Traditional Structures

11:38 The Rise of Evergreen Funds

29:48 Challenges and Risks of Evergreen Structures

30:01 Balancing Growth and Performance in Evergreen Funds

34:57 Challenges for General Partners

35:40 Expanding with New Products

36:23 Trends in Private Markets

36:56 Evergreen Funds and Private Companies

37:27 Life is Too Short for Capital Calls

38:52 Shift from Public to Private Markets

40:24 Liquidity in Evergreen Funds

41:50 Building a Resilient Diversified Portfolio

43:05 Managing Investor Expectations

44:26 Control in Portfolio Construction

46:48 Positioning Evergreen Funds

52:13 Evergreen vs. Closed-End Funds

54:43 Innovating Asset Allocation Frameworks

57:12 Educating Distribution Professionals

01:00:26 Consultative Sales Approach for Evergreen Sales Professionals

01:02:03 Future Growth in Private Markets

01:03:47 Rob’s Favorite Alternative Investment

01:04:42 Conclusion and Final Thoughts

Join over 5,300 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

His career started when someone said to him, “well, have you thought about venture capital? We don’t think that you’d be any good at it.”

The rest is history.

Today’s episode features one of the legends of the venture capital industry.

Peter Barris joined New Enterprise Associates in 1992 after a storied operating career as President and COO at Legent Corporation and an executive at GE Information Services. He served as Managing General Partner and Chairman of NEA from 1999 to March 2024. Under Peter’s leadership, NEA saw tremendous success, growing into one of the world’s largest venture capital firms and raising the largest-ever venture capital fund a number of times. Today, NEA’s AUM stands over $25B.

Peter was responsible for investing in a number of foundational and industry-transforming technology companies, including Salesforce.com, UUNET, Groupon, WebMD, Workday, CareerBuilder, Tempus, and more.

It was an honor to talk with Peter, who has such rich perspectives as both an operator and investor.

We had a fascinating discussion about the early days of venture capital and how the industry has evolved. We covered:

* The inside story of how almost every other Partner said no but Peter's investment turned out to be a 75x return.

* What's the “best characteristic and the death characteristic” of an entrepreneur?

* In today's hypercompetitive market do VCs have enough time to make good decisions?

* Why the world of venture capital is about influence.

* What does it mean to earn an entrepreneur’s trust as a VC?

* Why VCs with operating backgrounds can bring unique value to startups.

* How NEA came up with the term "Venture Growth Equity."

* How can a VC tell that a founder is good at experimentation and that they have the good judgment?

* Why specialization and domain expertise are prerequisites in today’s venture industry.

* The importance of relying on instinct to make great investments.

* Why the business plan that is bet on is not always the business plan that ultimately succeeds.

Thanks Peter for coming on the show. It was an honor and a pleasure to hear your views on the evolution of an industry and for you to share your wisdom and experiences.

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.

Clip #1: How Peter became a venture capitalist.

Clip #2: The world of venture capital is about influence.

Clip #3: The inside story of how almost every other Partner said no but Peter's investment turned out to be a 75x return.

Clip #4: How can a VC earn the trust of a founder?

Clip #5: How NEA found the white spaces in the VC industry to grow into a multi-billion dollar firm.

Show Notes

00:00 Introduction and Sponsor Message from Ultimus

01:55 Guest Introduction: Peter Barris

01:59 Peter Barris' Career Beginnings as an Operator

03:43 How Peter decided to join NEA

04:31 Early Days at NEA

12:30 First Investment Experience – The world of venture capital is about influence

15:07 How to Influence a Company when You Don’t Control the Company

21:48 Scaling Businesses: When Scale Can be a Moat - The Groupon Example

26:41 The Art of Experimentation

29:16 The Most Important Characteristic of Successful Entrepreneurs and the Death Characteristic

30:40 The Groupon Investment: A Case Study

33:08 The Evolution of Venture Capital Decision Making

33:58 Specialization and Competition in Modern Venture Capital

38:10 How NEA Came Up with the Term: Venture Growth Equity

46:04 The Impact of Scale in Venture Capital

50:49 The Future of Venture Capital and Industry Evolution

59:16 Lessons Learned in Venture Capital

01:02:08 Conclusion and Final Thoughts

Join over 5,000 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features the architects behind one of the industry’s faster growing wealth management platforms, NewEdge.

We welcome NewEdge CEO, Managing Partner, and Co-Founder Rob Sechan and NewEdge CIO Cameron Dawson.

Both Rob and Cameron have a wealth of experience in both wealth management and private markets. Rob has over two decades of experience in financial services, beginning his career as a financial advisor at Morgan Stanley, before running a family office business as a Managing Director at Lehman Brothers. He later joined UBS as a Managing Director and Head of the Intellectual Capital Subcommittee, where he helped guide the firm’s tactical investment process for wealthy families and institutional clients before founding NewEdge in 2020. Cameron was the Chief Market Strategist at Fieldpoint Private Securities and a Senior Equity Analyst at Bank of America before joining NewEdge as CIO.

Since its founding in 2020, NewEdge has grown to over $44B AUM, supports over 300 financial advisors. NewEdge has built a platform that combines wealth management, technology, custody, research, and alternatives capabilities. They’ve built out a sophisticated private markets investment practice, which we unpacked in detail on today’s podcast.

Rob, Cameron, and I had a fascinating discussion. We covered:

* The transformation in wealth management and the approach that NewEdge has taken in the independent wealth channel.

* The evolution of Super RIAs.

* The role of alternatives in wealth management.

* Navigating client psyche and market cycles.

* The importance of due diligence and why fee discipline matters in private markets.

* The importance of liquidity in a client's portfolio.

* Why portfolio construction is key in the wealth channel.

Thanks Rob and Cameron for coming on the show to share your thoughtful views 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.

Clip #1: Rob - we want to be cutting edge.

Clip #2: Cameron - how does NewEdge do things differently?

Clip #3: Rob - embracing change in the wealth management industry.

Clip #4: Cameron - how funds can engage with the wealth channel.

Show Notes

00:00 Introduction and Ultimus Sponsor Message

01:21 Welcome to the Podcast

02:03 Introducing NewEdge Wealth and the Guests

02:20 Rob Sechan's Journey in Wealth Management

07:46 Cameron Dawson's Perspective on NewEdge

11:45 The Role of Alternatives in Wealth Management

20:09 The Evolution of Super RIAs

24:10 Investment Strategies and Client Focus

31:31 Balancing Proactivity and Client Sensitivity

31:56 The Importance of Transparency and Differentiation

32:30 Navigating Client Psyche and Market Cycles

33:33 The Role of Alternatives in Portfolios

36:05 Private Equity Opportunities and Challenges

38:00 Fee Discipline and Alpha Generation

51:57 Engaging with Wealth Channels

56:52 Favorite Alternative Investments

59:27 Conclusion and Final Thoughts

Join over 4,900 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

On today’s show, we turned the tables. We welcomed famed podcast co-host of Animal Spirits and The Compound and Friends and writer at The Irrelevant Investor, and Managing Partner and Director of Research at $4B AUM Ritholtz Wealth Management Michael Batnick to come on the show to share a wealth manager’s perspective on private markets.

Michael’s career has taken a number of fascinating turns. He started selling insurance, before a chance meeting on the platform of the subway station with Josh Brown of Ritholtz Wealth Management after a New York Knicks loss led to a job offer to work with Josh at RWM. At Ritholtz, Michael has been an integral part of the team that has helped to drive the firm’s growth, leading with content and education. Each of the firm’s Partners have built impressive content platforms across blogs, books, and podcasts. Their thoughtful approaches to investing come through in their work — and it’s translated to how they think about private markets. Michael provided interesting viewpoints on why alternatives have yet to be adopted by many advisors and the challenges with adopting alternatives products.

Michael and I had a fascinating discussion at the intersection of wealth and alts. Michael and I covered:

* His journey into wealth management and the lessons he has learned along the way.

* The importance of education and networking in the wealth management industry.

* How he thinks about risk in public and private markets.

* The evolution of wealth management as a business.

* Why alternatives products are still sold and not bought.

* The importance of staying focused on fundamentals and long-term investing.

* The workflow challenges that alternative investments have for a wealth management firm.

* How and why content can develop views, educate, and build brand in wealth management and private markets.

Thanks Michael for coming on the show to share your thoughts and wisdom on investing.

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.

Clip #1: How did a Knicks loss lead to Michael’s career in wealth management?

Clip #2: “Who’s saying we need to invest in privates?”

Clip #3: Why are advisors afraid of private markets?

Clip #4: Public markets vs. private markets tension and “calling it what it is.”

Show Notes

02:03 Introduction to Alt Goes Mainstream

02:43 Guest Introduction: Michael Batnick

03:00 Michael's Early Career and Challenges

07:26 Meeting Josh Brown and Career Breakthrough

08:35 Lessons from the Insurance World

09:20 Creating Content and Building a Brand

10:58 Investing Philosophy and Market Insights

14:27 Young Investors and Market Psychology

19:13 Public vs. Private Markets

29:25 Advisors and Private Investments

34:21 Customization and Differentiation in Private Markets

34:50 Challenges in Pitching Investments to Clients

35:09 Operational Hurdles in Alternative Investments

35:34 The Role of Relationship Managers

36:16 Building and Managing Alts Portfolios

43:04 Market Dynamics and Investment Strategies

53:43 Content Creation in Wealth Management

58:53 The Future of Wealth Management with AI

01:01:46 Quick Fire Round: Market Predictions and Insights

01:05:19 Conclusion and Final Thoughts

Join over 4,800 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features a masterclass in private markets from a guest who has seen it all.

Jim Strang is a deeply experienced private equity professional who has been part of the industry as a GP, LP, investor, consultant, and now a teacher, board member, and advisor to a number of firms.

I’d probably have to spend a good few pages going through everything that Jim has done and is currently doing in private markets. He’s a practitioner and a teacher, an expert and an operator. After an illustrious career that was punctuated as Chairman EMEA of Hamilton Lane, one of the largest LPs in private markets globally, he now serves in a number of board and advisor roles, which include Chairman of the Board at HgCapital Trust plc, Senior Advisor to CVC Capital Partners, Advisor at Bain & Company, and Director at Pictet Alternative Advisors.

Jim and I had a fascinating conversation about the evolution of private markets and what the future holds for large and small funds alike, as well as LPs. We discussed:

* The step function changes that take private markets from $15T to $30T of AUM.

* Why traditional asset managers may struggle to replicate the capabilities of alternative asset managers in private markets.

* The importance of partnerships having a clear ambition and alignment if they want to build a scaled platform.

* The challenges that managers in the middle face as large platforms and specialist managers are the differentiated firms in the eyes of LPs.

* Why GPs need to find innovative solutions to address the needs of different types of investors.

* Why building a strong brand is crucial to success in the wealth channel.

Thanks Jim for coming on the show to share your wisdom and experience on 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.

Clip #1: Private markets are like Hotel California.

Clip #2: Is it better to be private or public as an alternative asset manager?

Clip #3: Is scale a defensible moat? … and “Consulting is about what you know, investing is about what you think”

Clip #4: What characterizes the current state of private markets?

Clip #5: Are partnerships the right governance model for alignment?

Show Notes

00:00 Introduction and Sponsor Message

02:06 Podcast Theme Song

02:44 Guest Introduction: Jim Strang

02:52 Jim Strang's Career Overview

05:35 State of Private Markets: Challenges and Opportunities

08:04 Fundraising Dynamics in Private Equity

11:25 European Private Equity: Evolution and Insights

15:01 Scaling Challenges and Ambitions in Private Equity

25:41 Technology and Innovation in Private Equity

32:47 Challenges in Organizational Analysis

33:56 Psychological Assessments in Investment Decisions

35:48 Effective Questioning Techniques for LPs

36:29 Transparency and Culture in Investment Firms

37:34 Evolution of Asset Management

38:41 Public vs. Private Asset Managers

40:27 Generational Shifts in Private Equity Firms

44:12 Growth and Democratization of Private Markets

48:40 Liquidity Challenges in Private Markets

54:45 Quick Fire Round: Insights on Private Markets

01:00:10 Entertainment Investments: Music Royalties and Sports

01:04:02 Conclusion and Final Thoughts

Join over 4,800 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast is a special show with 3i Members co-founder Mark Gerson.

Alt Goes Mainstream’s first sponsor is 3i Members, an investing network built on community, collaboration and capital that was co-founded by Mark Gerson, Billy Libby, and Teddy Gold. 3i Members is a global deal network for accomplished private investors. Members uncover, share, and diligence high-quality investment opportunities in private markets. The network offers more than just investment opportunities, providing access to expert databases, legal services, international events and retreats, masterclasses, asset allocation workshops, and other resources.

Mark is a serial entrepreneur who has built a number of communities that have revolved around some form of crowdsourcing.

In addition to founding 3i Members, Mark founded Gerson Lehman Group, a knowledge brokerage and primary research firm, that figured out how to use the power of community to serve its customers. He also founded United Hatzalah, a crowd-sourced system of volunteer first response that enables Israelis to be treated within the moments separating life from death following any medical trauma. He also co-founded and is the Chairman of African Mission Healthcare, which enables Christian medical missionaries to provide clinical care, training, and medical infrastructure for people throughout Africa.

From co-founding United Hatzalah of Israel to building a unique community in the private markets space with 3i Members, Mark shares his experiences and the profound impact of community and crowdsourcing in both philanthropy and private markets. The episode dives into the intricacies of building capable, engaged communities, the conceptual differences between a network and a community, and the unique approach of 3i Members in creating a collaborative investing landscape. We discussed:

* Mark’s journey and the significance of pro-social behaviors and intellectual curiosity among investors.

* How 3i Members facilitates a space for private investors to share, scrutinize, and engage with high-quality investment opportunities.

* The importance of asking the right questions in investment.

* ROI-based philanthropy

* The value of non-transactional relationships within communities.

Thanks Mark for coming on the show to share your stories and wisdom.

Chapters

00:00 Welcome to the Mainstream: The Alt Goes Mainstream Podcast Intro

00:42 Introducing 3i Members: A New Era of Investing

01:11 Mark Gerson's Journey: Building Communities and Crowdsourcing Success

02:59 The Power of Community in Crowdsourced First Response

07:59 3i Members: Crowdsourcing in the Investment World

09:44 The Art of Building and Maintaining Quality Networks

12:02 The Philosophy of No-Selling in Building Trust and Community

14:59 Engineering Serendipity: Fostering Organic Growth and Engagement

19:59 Investment Strategies and Learning from the 3i Community

24:40 The Future of Investing with 3i Members

34:51 ROI in Philanthropy: A New Approach to Giving

40:09 Closing Thoughts

Join over 4,700 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast provided us with an in-depth tour of financial markets with a student of both finance and history. And what a tour guide we had. Marc Rubinstein, an investment professional with 25 years of experience researching and investing in financial services joined us on the show.

Marc started his career as an equity research analyst, where he ultimately became a MD at Credit Suisse, leading the European banking sector equity research group before joining Lansdowne Partners. Lansdowne was one of Europe’s largest hedge funds, where he was a Partner and managed the award-winning $4B global long/short financials equity fund.

Clip #1: The rules of thumb with systemic risk and excessive growth in financial services.

He retired from Lansdowne in 2016 and, after going back to school to obtain his MBA from LBS, he launched Net Interest, a wildly popular and incredibly thoughtful newsletter on financial sector themes. I find Marc’s thoughts and views on Net Interest equal parts insightful and digestible. Marc is also an active value investor and early-stage fintech investor, where he was an early investor in Revolut. He’s also a contributor to Bloomberg Opinion.

Clip #2: Zuckerman’s Curse and the story of John Paulson

Marc and I had a fascinating conversation about a number of themes that are defining private markets. We discussed:

* Why most businesses are marketplaces and what that means for how one should evaluate a business.

* Whether or not private credit is a systemic risk.

* Why the Silicon Valley Bank crisis occurred and why private credit firms are filling the void.

* Where to look for new asset classes and how they become institutionalized.

* The nuts and bolts of alternative asset managers as businesses.

* Why pod shops have featured in the hedge fund world and why PE and VC will have different versions of pod shops.

* Why content is key for financial services businesses.

* How financial media has evolved and why the narrative arc of companies is a perspective that Marc enjoys covering.

Thanks Marc for coming on the Alt Goes Mainstream podcast to share your wisdom.

Clip #3: The evolution of media in financial services.

Chapters

Introduction and Background

Getting into the World of Finance

Banks Today and the Rise of Alternative Asset Managers

Regulatory Concerns and Private Credit

Systemic Risk and Excessive Growth

Identifying Risks in Private Credit

Scale and Returns in Asset Management

The Growth of Large Platforms in Private Markets

The Equilibrium of Scale and Returns

The Convergence of Traditional and Alternative Asset Management

The Trend of Evergreen Funds in Private Markets

The Acquisition of GIP by BlackRock

The Competition Between BlackRock and Blackstone

The Merging of Traditional and Alternative Asset Management

The Future of Active Management

Lessons from the Financial Crisis

The Impact of Media on Financial Services

The Trend of Permanent Capital in Private Markets

The Evolution of Media in Financial Services

The Role of Content in Financial Services

The Importance of Understanding Financial Services History

The Relevance of Deep Analysis in Financial Services

Value Creation through Content

Different Paths for Content Businesses

Purity of Content in Financial Services

The Future of Content in Financial Services

The Impact of AI on Investment Recommendations

The Value of Artisanal Work and Intelligence

Pod Shops in Private Markets

GP Stakes as an Analogy to Pod Shops

The Psychology of Discounting Private Markets

The Growth and Sustainability of Private Markets

Infrastructure as an Interesting Alternative Investment

Join over 4,600 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, and more.