Alt Goes Mainstream

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode dives into the rapidly expanding world of secondaries with a senior leader at one of the pioneering firms in the secondaries space.

We sat down at Franklin Templeton’s New York office with Taylor Robinson, a Partner on the Secondary team at Lexington Partners, which has over $77B in total capitalization and is part of Franklin Templeton’s family of private markets funds and strategies.

Taylor, who joined the firm in 2008, is primarily focused on the origination, evaluation, and execution of secondary opportunities, including partnership and GP-led transactions. He’s also a member of Lexington’s ESG Steering Committee.

Taylor and I had a fascinating conversation about the current state of the secondaries market. We covered many of the hot button topics and trends that are shaping the secondaries market, including:

* Why secondaries have become an integral part of many LPs portfolios.

* How secondaries have become a portfolio management tool for LPs.

* The rise of GP-led secondaries.

* Why not all CVs are created equal.

* Why secondaries can be a good on-ramp to private markets for wealth channel investors.

* What the future holds for secondaries.

Thanks Taylor for coming on the show to share your expertise and wisdom about private markets and secondaries.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

Show Notes

00:00 A Different Way of Thinking About Private Equity

01:21 Welcome to the Alt Goes Mainstream Podcast

01:31 Meet Taylor Robinson from Lexington Partners

02:03 The Evolution of the Secondaries Market

02:36 Taylor Robinson’s Career Journey

03:16 Joining Lexington Partners During the Financial Crisis

04:49 The Growth of the Secondaries Market

05:46 Impact of the Financial Crisis on Secondaries

06:11 The Role of Liquidity in Market Growth

06:59 Current State of the Secondaries Market

07:39 Focus Areas in the Secondary Market

07:55 Traditional vs. GP-Led Secondary Deals

09:06 The Importance of Liquidity

10:26 Challenges for Institutional LPs

11:39 Active Portfolio Management

15:48 Evaluating and Partnering with GPs

16:50 The Role of Information and Relationships

20:53 Future of Secondary Markets and Regulation

23:58 Primary vs. Secondary Fund Investing

28:01 Nuances in Secondary Market Strategies

32:29 Asset Selection in Secondary Markets

32:50 Value Drivers in Secondary Deals

33:32 Consistent Return Generation

34:44 Specialization in Secondary Markets

35:12 Different Ways to Make Returns

36:35 Comparing Secondary and Primary Funds

38:38 Evaluating Secondary Funds

40:20 Evergreen Funds and Secondary Investments

44:07 Challenges in Evergreen Space

45:01 Investor Preferences and Structures

45:26 Wealth Channel and Capital Raising

46:50 Skillset for Secondary Investors

49:11 Importance of Intellectual Curiosity

50:17 Underrated Skills for Success

52:03 Industry Trends and GP Consolidation

53:36 Understanding Market Dynamics

54:58 Training and Retention at Lexington

55:25 Future of Secondary Markets

56:07 Scale and Growth Potential

57:56 Misconceptions About Secondary Markets

59:44 Shifting Mindsets on Secondary Investments

01:01:10 Evolution of the Secondary Market

01:01:39 Conclusion and Final Thoughts

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,800 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode dives into the rapidly expanding world of secondaries with a senior leader at one of the pioneering firms in the secondaries space.

We sat down at Franklin Templeton’s New York office with Taylor Robinson, a Partner on the Secondary team at Lexington Partners, which has over $77B in total capitalization and is part of Franklin Templeton’s family of private markets funds and strategies.

Taylor, who joined the firm in 2008, is primarily focused on the origination, evaluation, and execution of secondary opportunities, including partnership and GP-led transactions. He’s also a member of Lexington’s ESG Steering Committee.

Taylor and I had a fascinating conversation about the current state of the secondaries market. We covered many of the hot button topics and trends that are shaping the secondaries market, including:

* Why secondaries have become an integral part of many LPs portfolios.

* How secondaries have become a portfolio management tool for LPs.

* The rise of GP-led secondaries.

* Why not all CVs are created equal.

* Why secondaries can be a good on-ramp to private markets for wealth channel investors.

* What the future holds for secondaries.

Thanks Taylor for coming on the show to share your expertise and wisdom about private markets and secondaries.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

Show Notes

00:00 A Different Way of Thinking About Private Equity

01:21 Welcome to the Alt Goes Mainstream Podcast

01:31 Meet Taylor Robinson from Lexington Partners

02:03 The Evolution of the Secondaries Market

02:36 Taylor Robinson’s Career Journey

03:16 Joining Lexington Partners During the Financial Crisis

04:49 The Growth of the Secondaries Market

05:46 Impact of the Financial Crisis on Secondaries

06:11 The Role of Liquidity in Market Growth

06:59 Current State of the Secondaries Market

07:39 Focus Areas in the Secondary Market

07:55 Traditional vs. GP-Led Secondary Deals

09:06 The Importance of Liquidity

10:26 Challenges for Institutional LPs

11:39 Active Portfolio Management

15:48 Evaluating and Partnering with GPs

16:50 The Role of Information and Relationships

20:53 Future of Secondary Markets and Regulation

23:58 Primary vs. Secondary Fund Investing

28:01 Nuances in Secondary Market Strategies

32:29 Asset Selection in Secondary Markets

32:50 Value Drivers in Secondary Deals

33:32 Consistent Return Generation

34:44 Specialization in Secondary Markets

35:12 Different Ways to Make Returns

36:35 Comparing Secondary and Primary Funds

38:38 Evaluating Secondary Funds

40:20 Evergreen Funds and Secondary Investments

44:07 Challenges in Evergreen Space

45:01 Investor Preferences and Structures

45:26 Wealth Channel and Capital Raising

46:50 Skillset for Secondary Investors

49:11 Importance of Intellectual Curiosity

50:17 Underrated Skills for Success

52:03 Industry Trends and GP Consolidation

53:36 Understanding Market Dynamics

54:58 Training and Retention at Lexington

55:25 Future of Secondary Markets

56:07 Scale and Growth Potential

57:56 Misconceptions About Secondary Markets

59:44 Shifting Mindsets on Secondary Investments

01:01:10 Evolution of the Secondary Market

01:01:39 Conclusion and Final Thoughts

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,800 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features a pioneer who has been building the core infrastructure that is making private markets go mainstream.

We talk with Gary Tenkman, a 30-year veteran of the fund administration world who is the CEO of Ultimus Fund Solutions. Ultimus serves over 450 clients and 2,300 funds, representing $725B of assets under administration, all handled by a team of over 1,100 professionals.

Ultimus, which is backed by private equity firm, GTCR and, more recently, Stone Point, is able to help investment managers navigate a growing array of challenges that include elaborate fund structures and evolving compliance requirements. Gary has built a business that combines the best of technology and human experts in fund administration to serve many of the industry’s largest funds. Ultimus has also been a big part of the ability for private markets to innovate with evergreen and interval fund structures since they have the necessary infrastructure and services to help fund managers launch, run, and administer evergreen structures.

Prior to joining Ultimus as CEO, Gary was Head of North American Operations at another large fund service provider, where he was responsible for service delivery for all clients in the region. During his 16 years there, he held leadership positions in alternative investment fund services, European fund services, and US fund services.

Gary and I had fascinating conversation about the evolution of fund administration and how fund administration in private markets has changed with the growing interest in evergreen and interval funds. We discussed:

* How fund administration has changed over the 30 years Gary has been in the industry.

* Will the evergreen fund industry mirror the growth and evolution of the mutual fund industry?

* The gap that Gary and Ultimus saw in private markets fund administration.

* Why fund services for evergreen fund structures is very complex and hard to do well.

* How technology can provide leverage to fund administration.

* Will AI impact fund administration?

* Why fund services are a compelling investment category for private equity.

Thanks Gary for coming on the show to share your wisdom and experience and thanks for your support of Alt Goes Mainstream. The work you’re doing at Ultimus is making a big impact on evolving the industry, so it’s an honor to have you partner with AGM. We hope you enjoy.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

Show Notes

00:58 Welcome to the Alt Goes Mainstream Podcast

01:07 Introducing Gary Tenkman and Ultimus Fund Solutions

02:00 Gary’s Background and Experience

03:43 Gary’s Journey in Fund Administration

04:31 Public vs. Private Market Fund Administration

04:50 Growth Areas in Fund Administration

07:05 Automation and Standardization in Fund Administration

08:34 Challenges in Data Standardization

11:50 AI’s Role in Fund Administration

12:55 Fund Level vs. Asset Level Data

14:02 Lessons from the Mutual Fund Industry

14:54 Product Innovation in Private Markets

19:51 Guiding Firms in the Evergreen Space

30:06 Founding of Ultimus

30:38 Client-Centric Approach

30:59 Investing in Technology and Growth

31:18 Mergers and Acquisitions

31:44 Scaling in Private Markets

32:44 Challenges and Agility

33:40 Client-Centric Culture

34:18 Winning Awards and Client Retention

34:43 High-Quality Client Service

35:38 Maintaining Culture Through Growth

36:50 Industry Consolidation

37:37 Partnerships and Investments

39:02 Future M&A Opportunities

39:27 Stone Point’s Investment

40:41 Growth in Evergreen Structures

41:33 Convergence of Public and Private Markets

42:11 Hybrid Product Structures

43:57 Regulatory Challenges

45:23 Education in Private Markets

51:02 Private Markets in the Retirement Space

53:33 Excitement for the Future

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,700 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode brings us to the apex of the wealth channel. We sat down in Goldman Sachs’ HQ at 200 West with Sara Naison-Tarajano, a Partner and Global Head of Private Wealth Management Capital Markets and Global Head of Goldman Sachs Apex Family Office Coverage. Sara is also responsible for the One Goldman Sachs Family Office initiative in the Americas.

Sara has been at Goldman Sachs for over 26 years, where she’s worked in a number of roles across the firm, equipping her with a multi-disciplinary background that is brought to bear in her current role leading a global platform that delivers multi-asset investing, financing, and direct investment opportunities to some of the world’s largest family offices. Goldman Sachs Apex Family Office Coverage now serves more than 600 family offices across the globe.

Sara and I had a fascinating discussion about the growing intersection between private markets and private wealth and what some of the wealth channel’s largest investors find interesting and differentiated in private markets. We covered:

* How Sara expected to spend one year at Goldman and it turned into 26 years at the firm.

* How her background in derivatives structuring in public markets has helped her approach private markets — and what investors in private markets can learn from being exposed to public markets.

* Why Sara decided to create Goldman Sachs Apex to build a dedicated group to help large family offices invest directly into private markets.

* How Apex is related to Goldman’s “One Goldman Sachs” initiative.

* How the power of the platform helps to differentiate Goldman’s wealth management business.

* What lessons the wealth channel can learn from how the UHNW and billionaire family office segment approaches private markets.

* Takeaways from the Goldman Sachs Family Office Insights Report.

* How the wealth channel can engage the next generation clients and how private markets play a role in reaching the next gen.

Thanks Sara for coming on the Alt Goes Mainstream podcast to share your expertise and wisdom on private markets and working with the wealth channel.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

Show Notes

00:21 Goldman Sachs: A Journey of 26 Years

00:41 Welcome to the Alt Goes Mainstream Podcast

01:05 Introduction to Sara Naison-Tarajano

03:09 Sara’s Unexpected Career at Goldman

04:56 Intellectual Curiosity in Financial Services

05:36 The Fascination with Derivatives

07:18 Transition to Wealth Management

08:06 Goldman’s Culture of Creativity and Entrepreneurship

08:33 The Rise of Family Offices

09:30 The Creation and Vision of Apex

11:10 Apex: Serving Sophisticated Family Offices

12:21 The Unique Deal Flow of Apex

13:12 Early Days and Evolution of Apex

16:46 Family Offices as Co-Investors

20:25 Misconceptions About Family Offices

22:09 Next Generation and Family Offices

26:19 Engaging the Next Generation

27:41 Long-Term Vision in Wealth Management

28:54 Balancing Fast Growth and Long-Term Vision

33:03 Public Markets Insights for Private Investors

36:31 Access to Capital in Private Markets

36:58 Emerging Trends in Private Markets

37:25 The Rise of Secondaries

37:52 Family Offices and Secondaries

39:00 Private Credit and Secondaries

39:23 The Permanence of Secondaries

40:56 Goldman’s Acquisition in the Secondary Space

41:54 Family Offices’ Investment Strategies

42:17 US vs Global Family Offices

42:49 Private Markets and Inflation

44:50 Advice for Wealth Channel Investors

45:46 The Importance of Liquidity Planning

46:39 Evergreen Funds vs Drawdown Funds

49:46 Internationalization of Family Offices

52:02 Geopolitical Concerns and Investments

53:19 Hedging Strategies for Family Offices

55:51 Mega Trends in Investing

57:41 AI and Infrastructure Investments

59:27 Simple Wealth Management Strategies

01:02:12 Fixed Income and Private Credit

01:03:09 Understanding Investment Terms

01:04:17 Risks in Private Markets

01:05:20 Cybersecurity Concerns

01:06:06 The Future of Apex

01:09:56 Entrepreneurial Endeavors in Wealth Management

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,600 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode brings infrastructure investing to life — literally.

We sat down in and walked through one of Stonepeak’s data center assets with Managing Director and CEO of SP+ INFRA, Cyrus Gentry.

Cyrus has played an integral role in Stonepeak’s rapid ascent as a firm and the growth of its wealth solutions business, Stonepeak+, joining early in the firm’s history and helping the firm grow to approximately $80B in AUM.

Cyrus brings a private equity perspective to infrastructure investing. Prior to Stonepeak, he held investing roles at BC Partners and Advent International. He also serves as one of the Church Commissioners for the Church of England, who hold responsibility for managing the Church’s £11.1B permanent endowment fund.

Cyrus and I had a fascinating and thought-provoking discussion about infrastructure investing and why and how it can fit within a wealth client’s portfolio. We covered:

* How Cyrus’ background in private equity investing has transferred over to investing in infrastructure.

* The opportunity and risks of data center investing.

* The risk of overbuilding in data centers.

* Why location matters for data centers.

* What makes interconnection data centers attractive data center assets.

* How Cyrus and Stonepeak have built their wealth solutions business and how they’ve endeavored to be different in how they’ve built out the business.

* How Stonepeak’s wealth business is a reflection of the firm’s DNA.

Thanks Cyrus for coming on the show to share your expertise, wisdom, and passion for infrastructure investing and working with the wealth channel.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

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

01:57 Welcome to the Alt Goes Mainstream Podcast

02:04 Introducing Cyrus Gentry and Stonepeak

03:39 Cyrus’s Background in Private Equity

04:10 Transition from Private Equity to Infrastructure

04:42 Understanding Infrastructure Investing

05:33 Key Characteristics of Infrastructure Assets

06:28 Defining Moats in Infrastructure

07:30 Differences Between Private Equity and Infrastructure

08:05 Stonepeak’s Growth and Strategy

09:09 Specialization in Infrastructure Sectors

10:10 Balancing Long-Term Horizons with Industry Changes

11:52 Importance of Data Centers

14:09 Consumer Impact of Infrastructure Assets

15:26 Investment Perspective on Connectivity

16:44 Challenges in Infrastructure Investing

19:27 Value Creation in Private Markets

19:57 Structured Capital and Deal Flow

22:18 Trends and Scale in Infrastructure Investing

25:40 Enabling Corporate Growth

26:08 Building Wealth Solutions at Stonepeak

26:29 Strategic Partnerships and Market Fit

27:19 Founding Stonepeak-Plus

27:29 Early Discussions on Wealth Business

27:52 Top-Down and Bottom-Up Thinking

28:57 Team Dynamics and Risk-Taking

30:16 Educating Investors on Infrastructure

30:36 Infrastructure in Wealth Portfolios

31:30 Global Infrastructure Opportunities

33:43 Learning from Institutional Allocators

34:49 Key Questions from Wealth Channel

35:37 Mega Trends and Investment Strategies

36:24 Core, Core Plus, and Value Add Assets

37:51 AI and Data Center Investments

40:09 Interconnection Hubs vs. Co-Location

42:47 Power and Data Center Synergy

46:35 Navigating Political and Regulatory Risks

48:58 Lessons Learned in Infrastructure Investing

51:17 The Fundamental Role of Infrastructure

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,500 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode takes us inside the world of wealth from the perspective of one of the industry’s largest alternative asset managers that has made the wealth channel core to its firm’s DNA from the beginning.

We sat down with Sean Connor, Senior Managing Director and the President & CEO of Global Private Wealth at Blue Owl Capital, a firm with almost $300B in AUM. Sean highlighted a number of key insights for navigating and working with the wealth channel as he shared lessons learned from building a successful private wealth business at a large alternative asset manager.

Sean is responsible for bringing the breadth of the Blue Owl investment platform to the global private wealth market. He’s at the forefront of Blue Owl’s private wealth initiatives globally and oversees fund formation, product structure innovation, capital raising, and client servicing. He also oversees business development, marketing, and operations for Private Wealth at the firm. Prior to his current role, Sean was one of the first employees at Owl Rock (now the Direct Lending division of Blue Owl) and was responsible for building out the private wealth business.

Prior to joining Blue Owl and Owl Rock, Sean served as a Managing Director of CION Investment Management for over 10 years. Sean was a member of CION’s Investment Committee and was responsible for all aspects of CION’s business including originating, underwriting, and negotiating corporate finance transactions globally. In 2020, Sean was recognized by Private Debt Investor as one of the industry’s Rising Stars.

Sean and I had a fascinating conversation about what it’s like to work with the wealth channel. We discussed:

* The biggest drivers of AUM growth for Blue Owl and how the wealth channel has been a major part of the firm’s story of scale.

* Lessons learned from growing and scaling a private wealth business in the US and internationally.

* The differences between the wealth channel a few years ago and the wealth channel today.

* What the wealth channel wants and needs from its alternative asset manager partners.

* Why Blue Owl focuses on investing in megatrends, like AI, digital infrastructure, and private credit.

* The opportunity in the 401(k) and retirement channels.

Thanks Sean for coming back on the Alt Goes Mainstream podcast to share your expertise and wisdom on private markets and private wealth.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

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, our Sponsor

01:57 Welcome to the Alt Goes Mainstream Podcast and Episode Overview

02:10 Guest Introduction: Sean Connor

04:07 Growth Drivers for Blue Owl

04:52 Diversification and Market Strategy

07:05 Brand Essence and Focus

12:01 Education and The Nest

15:05 Implementation Journey

18:53 Customization in Wealth Management

20:33 Product Structuring and Creation

22:08 Wealth Management Market Structure

26:06 International Expansion

28:22 Building Brand Internationally

30:11 Maintaining Entrepreneurial Culture

31:15 Challenges and Strategies

31:39 Leadership and Team Continuity

32:44 Teaching and Hiring Strategies

33:14 Growth Areas in Wealth Business

33:26 Evolution of Wealth Business

33:57 Opportunities in Private Markets

34:14 Growth Opportunities in the US

35:02 Global Expansion and Execution

35:33 Retirement Market Potential

36:04 Regulatory and Adoption Challenges

36:57 Retirement Ecosystem Parity

38:08 Education and Product Innovation

41:51 Private Credit and Direct Lending

44:21 Market Structure and Underwriting

46:07 Private Companies and Direct Lending

46:38 Wealth Channel and Private Credit

47:05 Managing Capital Influx

52:06 Digital Infrastructure Opportunities

52:41 AI and Cloud Computing

56:19 Risk Management in Digital Infrastructure

01:00:01 Focus on Downside Protection

01:01:07 Future Strategies and Excitement

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,400 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode dives into the nuances of enterprise software and how to build a scaled specialist alternative asset manager.

We sat down in Vista’s NYC office with David Breach, Vista’s President and Chief Operating Officer.

David sits on Vista’s Executive Committee, the firm’s governing and decision-making body for matters affecting its overall management and strategic direction as well as the firm’s Private Equity Management and Vista’s Private Equity Funds’ Investment Committees. David is also the Co-CEO of VistaOne, Vista’s evergreen private equity vehicle, and serves on the Investment Committee and Board of Directors. He also sits on the boards of Vista portfolio companies Jamf, Solera, and Stats Perform.

David, who has been instrumental in helping the firm chart its growth path to over $100B in AUM, joined Vista in 2014 after as a career as a Partner at law firm Kirkland & Ellis, where his practice focused on the representation of private equity funds in all aspects of their business. David was a member of K&E’s 15-person global executive management committee and a founding partner of its San Francisco office.

David and I had a fascinating and thought-provoking conversation about private markets and Vista’s evolution as a firm:

* How and why Vista has become a “scaled specialist.”

* The journey from $13B in AUM to $100B.

* The opportunity in enterprise software investing and how enterprise software is an expanding market opportunity.

* The reason why Vista decided to build out a dedicated wealth solutions business.

* How firms can differentiate in the wealth channel.

* How firms can be measured and thoughtful with how they build evergreen solutions.

* The opportunity for large companies to adopt GenAI for cost-savings and revenue generation.

* The skills that might be valuable in the age of AI.

Thanks David for coming on the show to share your wisdom and expertise in private markets.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

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

01:59 Welcome to the Alt Goes Mainstream Podcast

02:07 Guest Introduction: David Breach

03:01 David Breach’s Career Journey

03:52 Transition to Vista Equity Partners

04:13 Early Career and Legal Background

06:18 Joining Vista and Initial Impressions

06:43 Vista’s Vision and Growth Strategy

09:35 Operational Excellence at Vista

11:53 Investment Process and Alignment

14:31 Scaling Vista’s Operations

18:16 Building Vista’s Wealth Business

18:34 Vista’s Core Values and Culture

19:33 Strategic Decisions in Wealth Management

21:11 Challenges and Opportunities in Wealth Channel

24:29 Balancing Institutional and Wealth Investors

24:56 Transparency and Investor Relations

26:25 Institutional Concerns and Strategy

27:34 Investors Voting with Their Feet

27:38 Private Companies Staying Private Longer

28:10 Liquidity Mechanisms in Private Markets

28:35 Growth of the Software Industry

29:22 Penetration of Alternatives in Wealth Space

29:48 Belief in Private Markets

30:27 Expanding Exposure to Private Markets

31:11 Enterprise Software in Investment Portfolios

31:39 Resilience of Software Businesses

32:31 Diversification in Software Investments

33:37 AI Revolution in Enterprise Software

36:10 Operational Improvements with GenAI

36:52 Product Enhancements with GenAI

38:06 Revenue Opportunities with GenAI

38:20 Cost Savings vs. Revenue Generation

40:20 Middle Market Opportunities with GenAI

41:08 Vista’s Edge in GenAI Expertise

42:57 Encouraging AI Adoption

46:17 Skills for the AI Age

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,100 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode was filmed at ING’s HQ in Amsterdam, right after ING held its Private Markets Day. The firm has been actively building out its private markets capabilities to serve its private wealth clients so it was a treat to interview two of the people responsible for running ING’s wealth management and private markets practice.

We sat down with Anneka Treon, ING’s Global Head of Private Banking, Wealth Management & Investments, and Johan Kloeze, Head of Private Banking & Wealth Management Netherlands, to discuss ING’s big ambitions in private markets.

ING, which manages over €260B of invested assets across 5 million clients, has made a major push into private markets. Led by Anneka and Johan, the firm has built out a Private Markets business that has grown AUM in three years since its launch. ING has partnered with established alternative asset managers to create one of the largest evergreen fund platforms in European wealth management.

Anneka, Johan, and I had a fascinating discussion about wealth management, how to bring private markets to advisors and clients, and how to educate the wealth channel about private markets. We covered:

* What Anneka means by “fast money versus slow money.”

* Why it’s important for advisors to bring private markets “to the kitchen table.”

* How to transform savers into investors — and why that matters.

* Why focus on private markets.

* The challenges with building a private markets business.

* Figuring out how to partner with alternative asset managers.

* How and why ING has focused on curation when building its private markets platform.

* The benefits and challenges of evergreen funds.

Thanks Anneka and Johan for sharing your wisdom and expertise at the intersection of private markets and private wealth.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

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 Ultimus, our Sponsor

01:42 Welcome to the Alt Goes Mainstream Podcast

02:03 ING’s Private Markets Day

03:19 Introduction of Johan Kloeze and Anneka Treon

04:07 Johan’s Background and Role

05:03 Anneka’s Background and Ambitions

06:59 The Importance of Private Markets

08:33 Building the Private Markets Business

09:50 Evergreen Fund Structures

14:00 Client Education and Engagement

16:47 Making Private Markets More Human

20:02 Curating the Right Partners

23:32 Quality and Scale in Private Markets

23:39 Fast Money vs. Slow Money

24:41 The Importance of a Balanced Portfolio

25:44 The Importance of Manager Quality

25:48 Motivations Behind Public Market Investments

26:33 Backing Skilled Managers

26:55 Client Experience and Speed Dating

27:07 Educating Younger Clients

27:17 The Role of Social Media in Investments

28:24 The Dangers of Fast Money

28:56 ING’s Role in Providing a Full “Bookcase” of Investment Options

29:42 Challenges in Building the Private Markets Platform

30:41 Operationalizing Evergreen Vehicles

31:58 The Success of ING’s Private Markets Platform

32:28 Anneka’s Perspective on ING’s Private Markets Strategy

33:18 Humanizing Private Markets

33:59 Opportunities in the ELTIF Space

35:09 Educational Efforts for New Investors

37:49 The Future of ING’s Wealth Business

38:20 The Importance of Personal Approach

39:09 Balancing Digital and Traditional Investment Models

42:10 The Role of Private Markets in Client Portfolios

48:57 Conclusion and Final Thoughts

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,000 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode was filmed live at an event during a Brookfield Oaktree Wealth Solutions RIA Council meeting in New York.

Armen Panossian, the Co-CEO and Head of Performing Credit at Oaktree, and I sat down for a conversation in a Brookfield-owned building with a group of RIAs in the audience.

Armen, who joined Oaktree in 2007, has been an integral part of scaling Oaktree to over $209B in AUM. Oaktree, a storied firm, particularly in distressed credit, was recently fully acquired by Brookfield, the $1T AUM alternative asset manager.

Armen has a wealth of experience across different areas of credit. He is the Head of Performing Credit, where his responsibilities include oversight of the firm’s liquid and private credit strategies and as a portfolio manager within the Global Private Debt and Global Credit strategies. He also led the development of Oaktree’s CLO business.

Armen and I had a fascinating and thought-provoking conversation. We covered:

* The evolution of Oaktree’s business.

* How the acquisition by Brookfield has helped scale Oaktree’s business.

* Why private credit is more than direct lending.

* The nuances of asset-based finance.

* The current state of the credit markets.

* How Oaktree has approached distressed credit investing.

* What Armen’s memo would be if he were to write a memo like his colleague Howard Marks.

* And, why his memo might be titled “this is not your grandma’s private credit” or “don’t reach for risk to deliver the right return.”

Thanks Armen and the Brookfield Oaktree Wealth Solutions team for a fantastic night and Armen for sharing your wisdom and expertise with us.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

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

01:20 Welcome to the Alt Goes Mainstream Podcast

02:01 Live Event at Brookfield Oaktree Wealth Solutions RIA Council Meeting

02:08 Guest Introduction: Armen Panossian

04:07 Armen’s Background and Career Path

04:31 Early Career and Education

08:32 Joining Oaktree

09:03 Oaktree’s Early Days and Growth

09:28 Oaktree’s Investment Philosophy and Culture

12:57 Balancing the Pessimism of a Credit Investor and Business Building

13:25 Business Building and Strategy

15:50 Private Credit Market Insights

16:09 Scale and Strategy in Private Credit

16:48 Core and Alpha in Private Credit

17:26 Oaktree’s Approach to Direct Lending

21:25 Public vs. Private Credit Markets

23:09 Technicals and Fundamentals in Credit Markets

25:58 Valuation and Risk Management

26:51 Public Markets as Indicators

27:03 Consumer Impact on Private Credit

27:27 Market Psychology and Risk

29:04 Opportunities in Life Sciences Investing

29:48 Private Market Solutions for Struggling Industries

29:58 Judging Business Winners and Investment Opportunities

30:03 Public Sentiment and Private Investment

30:18 Private Credit Headlines and Challenges

30:35 Perceived vs. Actual Risks in Private Credit

30:59 Credit Market Technicals: Private vs. Public

31:41 Fraud Vigilance in Credit Markets

32:08 Oaktree’s Approach to Opportunistic Credit

34:05 Rescue Lending and Market Opportunities

34:38 Sector-Specific Lending: Life Sciences and Asset-Backed Finance

35:27 Asset-Backed Finance Market Dynamics

36:02 Oaktree’s History in Asset-Backed Finance

37:20 Banking Regulations and Lending Practices

38:47 Investment Opportunities in Unrated Asset-Backed Finance

42:39 Navigating the Private Credit Ecosystem

43:07 Oaktree’s Growth and Brookfield Partnership

45:14 Wealth Channel Investment Strategies

46:42 Brookfield and Oaktree’s Unique DNA

48:56 Concerns and Opportunities in Private Credit

54:26 Howard’s Memos and Investment Philosophy

58:03 Conclusion and Final Thoughts

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 14,000 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode brings the perspective of an asset management veteran who has sat on both sides of the table.

We sat down in Franklin Templeton’s New York City office with George Stephan, COO of Global Wealth Management Alternatives at Franklin Templeton.

George joined Franklin to continue the buildout of the firm’s Alternatives capabilities, which boasts over $264B AUM in private markets strategies that include Lexington Partners, Benefit Street Partners, and Clarion Partners. George came from KKR, where he was Head of Strategy and Business Development for the firm’s Global Client Solutions business and was also COO and Head of Investor Relations for KKR’s Global Wealth Solutions business in the Americas. Prior to KKR, George spent nine years in Morgan Stanley’s wealth management division. George is also a Board Observer at CAIS.

George and I had a fascinating conversation about how to build a wealth solutions business and how advisors approach private markets. We discussed:

* How has the adoption of private markets by the wealth channel evolved over the course of George’s career?

* The benefits and challenges of being a traditional asset manager building out its private markets capabilities.

* The breadth and depth of Franklin Templeton’s reach as a firm and how that brand and history have helped Franklin partner with the wealth channel in private markets.

* How has Franklin Templeton’s family of specialists enabled the firm to leverage the expertise of specialist alternative asset managers within a larger platform?

* How does the wealth channel approach private markets?

* How will model portfolios be constructed and adopted by the wealth channel?

* Will evergreen funds be the structure of choice for most advisors?

Thanks George for coming on the show to share your expertise and wisdom at the intersection of private markets and private wealth.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

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 from Ultimus, our Sponsor

01:55 Welcome to the Alt Goes Mainstream Podcast

04:00 George Stephan’s Career Journey

06:11 Building Wealth Solutions at Franklin Templeton

07:05 Key Pillars for Success in Wealth Management

07:39 Client Service and Operational Excellence

09:31 Franklin Templeton’s Size and Scale Advantage

10:26 Convergence of Public and Private Markets

13:11 Strategic Acquisitions and Partnerships

14:38 Unifying Private Markets Business

16:40 Franklin Templeton’s Culture and Values

17:46 Heritage and Long-Term Vision

18:50 Innovative Solutions and Technology

19:33 Building a Top 10 Private Markets Business

19:59 Legacy Relationships and Branding

22:42 Educating Advisors on Private Markets

22:59 Comprehensive Private Markets Capabilities

24:56 Strategic Partnerships in Infrastructure

26:35 Future of Partnerships and Acquisitions

27:21 Growing Partnerships in Private Infrastructure

27:54 Advisor Perspectives on Wealth Channel Productization

28:28 Manager Specialization in Private Markets

29:06 Innovation and Product Development Trends

29:53 Challenges and Opportunities for Large Asset Managers

30:46 The Future of Multi-Asset Products

31:10 Operational Complexity in Private Markets

32:23 The Need for Digital Transformation

32:56 Adoption of Distributed Ledger Technology (DLT)

33:47 Industry-Wide Technology Evolution

34:51 Impact of Market Efficiency on Returns

35:39 Performance and Client Experience in Private Markets

37:30 Scale and Investment Integrity

39:53 Building Capabilities in Franklin Alternatives

40:48 Partnering with Asset Managers

42:58 Keys to Building a Wealth Solutions Business

43:41 Hiring for Private Markets Expertise

45:08 Educating the Industry on Private Markets

47:21 Evergreen Structures and Long-Term Investment

51:38 Exciting Trends in Private Markets

Editing and post-production work for this episode was provided by The Podcast Consultant.

Join over 13,900 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.