Alt Goes Mainstream

Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast was a conversation that was recorded live at Morningstar’s Investment Conference in Chicago earlier this year.

Morningstar CEO Kunal Kapoor took time out of his packed schedule at the event to sit down with me for a thought-provoking conversation that dove into the nuances of many of the trends that are shaping private markets today.

Morningstar and Kunal have quite an interesting perch in the market. They occupy a critically important function in the market: helping investors understand the data, structures, and trends in public and private markets. They provide fund ratings, investment analysis, and market data to both individual and institutional investors.

As public and private markets experience increasing convergence, Morningstar finds itself at the intersection of markets that are undergoing rapid evolutions across product structures, asset allocation frameworks, and weighty questions around conceptual frameworks of liquidity, risk, volatility, concentration that are on the minds of many. Amongst the wide range of topics Kunal and I covered, one stood out: Morningstar is fiercely on the side of the investor.

If there’s anyone who has a deep understanding of Morningstar’s DNA, it’s Kunal. Kunal started at Morningstar in 1997 as a data analyst, holding a variety of roles at the firm, including leadership positions in research and innovation. He served as director of mutual fund research and was part of the team that launched Morningstar Investment Services, Inc., before moving on to other roles including director of business strategy for international operations, and later, president and chief investment officer of Morningstar Investment Services. During his tenure, he has also led Morningstar.com® and the firm’s data business as well as its global products and client solutions group.

Kunal and I had a fascinating and lively conversation. We covered a number of the most pressing topics in private markets today: the convergence of public and private, liquidity vs illiquidity, investor education, the importance of transparency, and the why, what, and how behind evergreen funds.

Thanks Kunal for coming on the show to share your wisdom, expertise, and passion for public and private markets.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.

Clip #1: Is Wall Street smarter than Main Street?

Clip #2: What it means to fight on behalf of the investor.

Clip #3: When should people start to think about working with a financial advisor?

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 Ultimus Sponsor Message

01:18 Welcome to Alt Goes Mainstream

01:55 Welcome to the Morningstar Investment Conference

02:33 Convergence of Public and Private Markets

03:15 Challenges in Transitioning to Private Markets

03:32 Morningstar's Evolution and Impact

04:29 Generating Alpha in Private Markets

04:43 Importance of Time Horizon in Investments

06:51 Morningstar's Role in Investor Empowerment

07:15 Cost Reduction and Ownership in Mutual Funds

08:34 Evergreen Funds and Transparency

09:07 Challenges in Private Market Accessibility

09:41 Liquidity and Fee Structures in Private Markets

17:00 Role of SEC in Standardizing Documentation

19:06 Investor Education and Common Language

19:50 Data Availability and Analysis

20:44 Evaluating Different Investment Structures

21:32 Public-Private Partnerships in Investment

22:21 Philosophical Questions on Private Markets

23:43 Behavioral Aspects of Illiquidity

24:26 Evergreen Funds as Buy and Hold Vehicles

25:01 Asset Allocation and Evergreen Structures

26:07 Investor Behavior and Portfolio Construction

26:22 Comparing Individual Investors and Advisors

27:20 Stability of Retail Assets

27:57 Crypto Trading: 24/7 Market Dynamics

28:09 Impact of Social Media on Young Investors

28:31 Comfort with High-Risk Ventures

28:49 Market Resilience and Drawdowns

29:13 Future of Financial Advisors

29:52 Investor Behavior Across Age Groups

31:03 Validation and Information Overload

31:48 Morningstar's Independent Voice

33:02 Transparency in Private Markets

33:24 PitchBook's Role in Market Data

33:51 Challenges in Data Transparency

34:30 Tipping Point in Transparency

35:12 Flywheel Effect in Market Data

35:42 Private Market Indices

36:44 Challenges in Benchmarking Private Markets

37:37 Evolution of Market Structure

38:25 Public vs. Private Market Dynamics

38:58 Future of Private Market Investments

39:54 Fee Structures and Competition

40:51 Operational Burdens in Private Markets

42:11 Pre-Trade Market Structure

42:28 Access to Private Markets

49:01 Brand vs. Performance in Investments

49:18 Morningstar's Role in Investor Education

51:06 Future of Alternative Investments

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

Join over 13,000 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 dives into the evolution of infrastructure investing with the leading scaled specialist firm in infrastructure.

We sat down in Stonepeak’s Hudson Yards office with the firm’s Co-President Luke Taylor to discuss the inner workings of the infrastructure investing world and unpack the story of how Stonepeak’s rapid ascent has seen the firm climb to $76.3B in AUM in 14 short years.

Luke brings a wealth of experience to the infrastructure investing world. He is Co-President of Stonepeak and a member of all of the firm’s investment committees. He’s been investing in infrastructure for over 20 years, joining Stonepeak from infrastructure investing pioneer Macquarie Capital.

Luke and I had a fascinating and thought-provoking discussion about infrastructure investing and why it’s becoming an increasingly important part of the private capital ecosystem. We covered:

* How Luke went from growing up on a sheep farm to investing in infrastructure in New York.

* What Macquarie taught him about how to approach infrastructure investing.

* Why he took the entrepreneurial leap to build Stonepeak and join Chairman, CEO, and Co-Founder Mike Dorrell from the firm’s earliest days.

* Why infrastructure investing is more than toll roads, airports, and bridges.

* How there are elements of a private equity approach to investing in, building, and operating infrastructure assets.

* Where infrastructure fits in an investors’ portfolio.

* Why individual investors should consider exposure to infrastructure assets.

* Has infrastructure proved itself through an inflation cycle?

* Why scale matters in infrastructure investing.

* How Stonepeak identified investing in data centers early on and well before the data center boom began.

* What type of demeanor and mindset makes for a successful infrastructure investor.

Thanks Luke for coming on the show to share your expertise, wisdom, and passion for infrastructure investing.

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.

Clip #1: What does it take to be a truly great infrastructure investor?

Clip #2: Driving value creation in infrastructure investing.

Clip #3: Infrastructure as a defensive investment.

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.

To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction to Ultimus Fund Solutions, our Sponsor

01:18 Welcome to the Alt Goes Mainstream Podcast

02:04 Guest Introduction: Luke Taylor

02:45 Luke Taylor's Background and Journey

04:52 Early Days at Macquarie

05:47 Entrepreneurial Spirit at Macquarie

08:13 Building Stonepeak

10:37 Value Creation in Infrastructure

12:28 Mindset of an Infrastructure Investor

13:38 Balancing Long-Term and Agile Thinking

14:23 Key Skills for Success

16:20 Underwriting and Risk Management

16:48 High Barriers to Entry

19:36 Operational Intensity and Value Creation

22:51 Network Effects in Infrastructure

24:19 Defensive Position of Infrastructure

24:49 Infrastructure in Private Markets

26:37 Inflation and Infrastructure Performance

27:28 Portfolio Construction and Infrastructure

28:33 Productizing Infrastructure Investments

29:01 Equity, Credit, and Real Estate Strategies

30:51 Thematic and Opportunistic Investing

31:23 Early Investment in Data Centers

31:32 Entrepreneurial Staff at Stonepeak

31:36 Identifying Investment Opportunities

31:45 Exploring Data Centers

32:11 Challenges in Data Center Investments

32:34 Discovering Interconnection Hubs

33:11 The Role of AI in Data Centers

36:14 Downside Protection in AI Investments

36:28 Underwriting AI Thematics

36:49 Capital Needs in AI and Data Centers

38:40 Navigating Increased Capital in Infrastructure

40:38 Scaling Stonepeak's Infrastructure Investments

41:16 Diversification in Infrastructure Investments

42:26 Competition in Infrastructure Investments

43:58 Developing an Edge in Origination

44:35 The Role of Structure in Deal Sourcing

45:23 Evolution of Infrastructure Investment Space

45:57 Building New Infrastructure Assets

46:09 Exits in Large Infrastructure Deals

47:03 Evergreen Funds and Long-Term Holdings

48:49 Stonepeak's Wealth Business Strategy

53:56 Challenges in Starting a Wealth Business

54:29 Importance of Deal Flow

56:35 Navigating Volatile Markets

57:03 Risks in Infrastructure Investing

58:10 Future of Infrastructure Investments

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

Join over 12,600 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 dives into how operations and streamlining technology processes can be turned into a strategic advantage.

We sat down with Arcesium’s MD and Head of Client and Partner Development David Nable to discuss how technology is impacting how funds manage their processes, operations, and data.

David was an early employee at Arcesium, helping the firm scale and working with many of the industry’s largest asset managers across the lifecycle of an investment. David joined Arcesium after a career in fund services and fund administration that spanned senior roles at Goldman Sachs, Credit Suisse, and BNP Paribas Securities Services.

David and I had a fascinating conversation. We discussed:

* How David’s background in prime brokerage and fund admin helped him approach the technology problems for asset managers.

* How asset managers should approach where and how technology can be a strategic advantage.

* What does it mean to be a tech-forward asset manager?

* How does the growth of evergreen funds impact how firms manage their data and serve investors?

* What still needs to be built next to continue to improve private markets market infrastructure.

Thanks David for coming on the Alt Goes Mainstream podcast to share your expertise and wisdom on private markets technology and post-investment processes.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.

Clip #1: What is the true cost of a technology solution?

Clip #2: Architecting your systems and data for the future.

Clip #3: Be careful with vibe coding.

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

01:18 Welcome to the Alt Goes Mainstream Podcast

02:05 Guest Introduction: Arcesium’s David Nable

03:48 David's Career Journey

04:19 Parallels Between Running and Finance

05:24 Observing Industry Trends

06:47 Evolution of Private Markets

08:59 Impact of Technology on Investment

09:54 Challenges of Scaling Investments

11:40 Data-Driven Investment Strategies

13:04 Technological Advancements in Finance

14:15 Importance of Foundational Data

18:06 Data Silos and Harmonization

18:50 Case Study: Investor Relations

22:22 Data-First Approach Benefits

22:37 Architecting Systems for Flexibility

23:31 Timing for Implementing Technology

23:39 Real-World Challenges and Solutions

24:10 Inflection Points in Management

24:28 Logical Breakpoints for Change

24:45 Preparing for New Strategies

24:53 Publicly Traded Private Markets

25:21 Investing in Scalable Distribution Channels

25:42 Strategic Business Planning for SMAs

26:09 Data Architecture and Implementation

26:44 Understanding Data in Different Business Models

28:16 The Role of Technology in Investment Firms

28:47 Strategic CTOs and Their Impact

30:46 The Paradox of Data in Decision Making

32:04 Leveraging Data for Competitive Advantage

33:00 The Impact of AI on Data Utilization

33:43 Challenges for Mid-Sized Firms

34:33 Technology as an Enabler for Niche Specialists

35:24 Advice for Mid-Sized Firms on Technology Implementation

36:43 Focusing on Major Technological Investments

37:58 Point Solutions vs. Platforms

40:29 The True Cost of Technology Solutions

41:05 Operational Challenges with Multiple Systems

42:43 Arcesium's Technology Platforms

45:09 Simplifying Complex Investments

46:20 Customization vs. Standardization in Private Markets

48:14 The Future of Private Market Software

48:42 AI: The Step Function Change

49:36 Efficiency Gains from AI

50:08 Advice on Using AI in Asset Management

50:18 Caution Against Vibe Coding

51:14 Conclusion and Final Thoughts

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

Join over 12,600 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 dives into what the future of fund administration could look like with a tech-forward approach and the application of AI.

We sat down with Juniper Square CEO and Co-Founder Alex Robinson to discuss how and why they’ve built a digital first fund administrator for private markets, starting with real estate and since expanding into other asset classes.

Fresh off of a $130M Series D fundraise led by Ribbit Capital, Juniper Square has expanded globally, into fund administration through its acquisition of Forstone, and has launched JunieAI to bring AI to fund administration.

Alex and I had a fascinating conversation. We discussed:

* Why Alex started Juniper Square and how his two entrepreneurial endeavors has informed how he’s built the firm.

* The problem Alex set out to solve by building Juniper Square.

* After dealing with FedEx’s to make investments, how he set out to build an investor experience that was digital.

* How AI will impact fund admin.

* Why every GP should have an AI agent according to Alex.

* Why Juniper Square decided to move from a technology firm to add fund administration capabilities in-house.

* Does AI benefit larger firms or smaller firms more?

Thanks Alex for coming on the Alt Goes Mainstream podcast to share your expertise and wisdom on fund administration and AI.

Clip #1: “It has to be right … always.”

Clip #2: “We want to be in the high-high quadrant. Very high technology. Very high service levels.”

Clip #3: Every area inside of the GP should have an AI agent that is part of the team.

A word from AGM podcast sponsor, Juniper Square

When was the last time things were easy for GPs?

Fundraising remains challenging, providing liquidity to investors is even harder—and broadly speaking, most GPs are underwater operationally.

It’s not about to get easier, either. Especially for managers vying for capital from the wealth channel. Sure, there’s increased demand from HNW and UNHW investors to gain private markets exposure…but managing their expectations for the investing experience is a whole different ballgame.

Reams of paper and a new KYC process every single time they subscribe to a fund? Brutal.

But what if committing capital to private equity, venture, and real estate funds was digital and seamless for investors — and scalable to manage for GPs?

Meet Juniper Square, the fund operations partner to over 2,000 private markets GPs worldwide.

Juniper Square gives GPs the connected software, data, and fund administration services needed for modern private markets. No matter how ambitious your next raise is, how many investors you manage, and how complex your investment vehicles are, Juniper Square empowers GPs to raise capital faster, reduce operational risk, and deliver a world-class investor experience.

And with JunieAI, Juniper Square's enterprise-grade AI built for private markets, GPs can truly and finally unlock the power of AI to work smarter, move faster, and focus on relationships and returns.

Scale your business, not your operational burdens and costs. Visit junipersquare.com/agm today to learn more.

Show Notes

00:00 Introduction to Alt Goes Mainstream Podcast

00:03 Juniper Square: Revolutionizing Fund Management

00:38 The Power of Juniper Square's AI

01:38 Welcoming Alex to the Podcast

01:59 Alex's Journey to Founding Juniper Square

02:10 Juniper Square's Mission and Services

02:39 The Early Days and Challenges

03:17 The Digital Transformation of Private Markets

04:20 Focusing on the GP Experience

04:41 The Importance of LP Experience

05:19 Overcoming Industry Challenges

07:11 Real Estate: The Starting Point

08:58 The Evolution of Juniper Square

09:56 Technology Adoption in Private Markets

12:19 The Complexity of Fund Administration

14:58 Expanding Across Asset Classes

17:56 Customer-Driven Development

18:11 The Role of AI in Fund Management

21:22 The Importance of Security and Trust

23:44 The Move into Fund Administration

26:26 The Full-Stack Service Approach

29:00 Challenges of Integrating AI

29:57 The Future of Fund Administration

31:05 The Demands of Fund Administration

31:53 The High Stakes of Mistakes

32:05 The Relentless Workload

32:30 AI's Impact on Productivity

32:48 The Reality of Workforce Reduction

33:22 Challenges in AI Adoption

33:51 Launching JunieAI

34:36 Understanding AI Models

34:58 Tailoring AI for Reporting

35:40 The Importance of Data Consistency

36:57 AI in Software Development

37:52 Customer-Centric AI Development

38:17 Accuracy in Financial Reporting

39:26 Limitations of AI in Financial Insights

39:58 Future Improvements in AI

40:41 Feeding AI the Right Context

41:16 Connecting AI to Tools and Workflows

42:26 The Future of Fund Administration

45:18 AI's Role in Business Transformation

53:13 Human vs. Computer Work

54:16 Balancing AI and Human Relationships

57:22 The Vision for Private Markets

57:52 AI Agents in GP Work

58:59 Improving GP-LP Matchmaking

01:01:20 The Future of Financial Products

01:03:45 Investment Strategies in Private Markets

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

Join over 12,600 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, General Atlantic, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

What happens when two podcasters walk into a room?

They talk.

Today’s podcast turns the tables on one of the industry’s leading podcasters and content creators to have him share his story and experience as an allocator and content creator.

We sat down with Ted Seides, the Founder of industry-leading podcast Capital Allocators and former President and Co-CIO of Protégé Partners and an asset allocator at the Yale Endowment.

Ted has had a tremendous career at the intersection of asset allocation and content, so it was fascinating to hear his perspectives on the state of the industry and how it’s evolving from someone who talks with many of the industry’s leading minds through his podcast, Capital Allocators.

Ted and I had a fascinating conversation. We discussed:

* Stories and lessons learned from working with David Swensen at the Yale Endowment.

* What the wealth channel can learn from institutional investors.

* What Ted looked for in hedge funds and alternative asset managers when doing manager due diligence.

* Ted’s bet with Buffett on hedge funds and why he’s now doing a bet on PE versus public equities.

* How alternative asset managers are evolving and the pros and cons of evergreen structures.

* Why and how Ted started Capital Allocators and why content is so critical to learning asset management and understanding how firms operate.

Capital Allocators is one of my favorite podcast listens and Ted always delivers with high-quality and thoughtful content so it was an honor to have him on the show.

Thanks Ted for sharing your expertise and wisdom on asset allocation and content and for the service you provide to everyone in the industry through education and the creation of such high-quality content for us to consume.

Clip #1: Today is the hardest day to invest.

Clip #2: The bet: private equity vs. S&P 500.

Clip #3: The podcast found me.

A word from AGM podcast sponsor, Juniper Square

When was the last time things were easy for GPs?

Fundraising remains challenging, providing liquidity to investors is even harder—and broadly speaking, most GPs are underwater operationally.

It’s not about to get easier, either. Especially for managers vying for capital from the wealth channel. Sure, there’s increased demand from HNW and UNHW investors to gain private markets exposure…but managing their expectations for the investing experience is a whole different ballgame.

Reams of paper and a new KYC process every single time they subscribe to a fund? Brutal.

But what if committing capital to private equity, venture, and real estate funds was digital and seamless for investors — and scalable to manage for GPs?

Meet Juniper Square, the fund operations partner to over 2,000 private markets GPs worldwide.

Juniper Square gives GPs the connected software, data, and fund administration services needed for modern private markets. No matter how ambitious your next raise is, how many investors you manage, and how complex your investment vehicles are, Juniper Square empowers GPs to raise capital faster, reduce operational risk, and deliver a world-class investor experience.

And with JunieAI, Juniper Square's enterprise-grade AI built for private markets, GPs can truly and finally unlock the power of AI to work smarter, move faster, and focus on relationships and returns.

Scale your business, not your operational burdens and costs. Visit junipersquare.com/agm today to learn more.

Show Notes

00:00 Introduction to our Sponsor, Juniper Square

00:38 Juniper Square's AI Capabilities

01:50 Guest Introduction: Ted Seides

03:11 Ted's Background and Career Start

04:12 Working with David Swensen

04:58 Investment Principles from Yale

06:16 Wealth Channel vs. Institutional Allocators

06:42 David Swensen's Second Book

07:38 Alpha and Beta in Private Markets

08:37 Access to Top Managers

13:19 Private Equity vs. Public Equities Bet

15:15 Evaluating Private Equity Returns

18:32 Diversification in Private Markets

20:10 Lessons from Hedge Fund Evolution

28:48 Investment Culture and Philosophy

30:31 Evaluating Managers: Art and Science

32:01 The Role of AI in Diligence Processes

33:37 Market Opportunities and Edges

34:06 Impactful Investment Decisions

35:32 Challenges in Today's Investment Climate

37:00 Behavioral Biases in Investing

39:25 AI's Role in Investment Decisions

41:18 Navigating Content Overload

42:46 The Birth of Capital Allocators

44:11 Learning from Podcasting

47:20 Building a Business from a Podcast

49:12 The Value of Relationships in Investing

50:58 Effective Content Strategies for Managers

53:49 Choosing the Right Content Modality

54:50 Direct Communication vs. Mass Algorithms

55:20 Brand Building vs. Direct Sales

56:42 Insights from Podcast Conversations

58:30 Favorite Private Market Investments

01:00:11 AI's Impact on Private Markets

01:01:40 Partnering with Experts in AI

01:02:19 The Importance of People in Investing

01:02:39 Wrapping Up the Conversation

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

Join over 12,400 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, General Atlantic, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is about mining for investment success in enterprise software by going “an inch wide and a mile deep” with someone who is one of the industry’s most prolific private equity technology investors.

We sat down with Nic Humphries in Hg’s London office. Nic is the Senior Partner and Executive Chairman of Hg and Head of the firm’s Saturn fund.

Hg, one of the top 10 largest PE firms globally based on the PEI300 ranking, has built an impressive investment engine focused on mission-critical enterprise software. The firm has built a portfolio that is a “transatlantic ecosystem of software and services businesses” — representing over $180B in collective enterprise value across its 55 portfolio companies.

Nic is responsible for Hg’s strategy, management, and governance. On the investing side, Nic focuses on larger software investments that provide daily-use mission critical applications for accountants, tax / compliance professionals, and designers / engineers / scientists. He has brought his electrical engineering background to bear to go a “mile deep” into a category where Hg has become an unquestioned market leader.

Nic balances being both a detail-oriented specialist with a vision for both the enterprise software industry and Hg as a firm. We had a fascinating discussion about enterprise software investing, how to create European software giants, applying AI to make companies more efficient, and much more.

We covered:

* The origin story of Hg.

* How Hg grew into one of the industry’s leading software focused private equity firms.

* How an engineering mindset has helped Nic become a leading investor.

* Why Hg focuses on mission-critical enterprise software and why it’s a compelling investment thesis.

* Why enterprise software investing can be considered a low volatility investment strategy and how Hg has delivered consistent returns to investors.

* How to effectively manage exits and DPI.

* Why Europe, why now?

* How AI could impact technology and services businesses.

Thanks Nic for coming on the show to share your wisdom and expertise about enterprise software and private markets.

Clip #1: Unprecedented portfolio consistency.

Clip #2: The structural shift in private markets.

Clip #3: The AI platform shift and cost revolution.

A word from AGM podcast sponsor, Juniper Square

When was the last time things were easy for GPs?

Fundraising remains challenging, providing liquidity to investors is even harder—and broadly speaking, most GPs are underwater operationally.

It’s not about to get easier, either. Especially for managers vying for capital from the wealth channel. Sure, there’s increased demand from HNW and UNHW investors to gain private markets exposure…but managing their expectations for the investing experience is a whole different ballgame.

Reams of paper and a new KYC process every single time they subscribe to a fund? Brutal.

But what if committing capital to private equity, venture, and real estate funds was digital and seamless for investors — and scalable to manage for GPs?

Meet Juniper Square, the fund operations partner to over 2,000 private markets GPs worldwide.

Juniper Square gives GPs the connected software, data, and fund administration services needed for modern private markets. No matter how ambitious your next raise is, how many investors you manage, and how complex your investment vehicles are, Juniper Square empowers GPs to raise capital faster, reduce operational risk, and deliver a world-class investor experience.

And with JunieAI, Juniper Square's enterprise-grade AI built for private markets, GPs can truly and finally unlock the power of AI to work smarter, move faster, and focus on relationships and returns.

Scale your business, not your operational burdens and costs. Visit junipersquare.com/agm today to learn more.

Show Notes

00:00 Introduction to our Sponsor, Juniper Square

01:37 Welcome to the Alt Goes Mainstream Podcast

04:07 Nic Humphries' Background

04:54 Bringing an Engineering Mindset to Investing

05:24 Long-Term Business Thinking

06:11 Enterprise Software Investment Strategy

06:58 Growth Factors in SMB Market

09:21 Impact of AI on Enterprise Software

09:51 Platform Shifts in Technology

11:30 Adapting to AI in Business

12:36 Mission Critical Software and Market Dynamics

15:28 Embedding Products and Services

18:03 Organic Growth vs. Acquisitions

21:32 Geographical Expansion Strategies

22:28 Challenges of Expanding in Europe

24:00 Underwriting for Long-Term Success

24:18 Management Teams and Expansion

26:59 Jurisdictional Differences in Payroll Software

27:44 Investing in Market Leaders

29:35 Enterprise Software Market Size

30:53 Software's Ubiquity in Business

33:33 Hg's Investment Strategy

39:31 Consistency in Returns

41:38 Understanding Recurring Revenues

42:28 The Importance of Discipline in Investing

43:21 Learning from Past Mistakes

45:11 Maintaining Team Excitement and Focus

47:18 The Role of Realization Committees

48:43 Continuous Improvement Culture

49:45 The Importance of Early Cash Returns

51:04 Exit Strategies and Realization Committees

52:40 Re-underwriting Investments

54:50 AI's Impact on Software Development

56:28 The Rule of 40 and AI's Potential

56:54 Investing in AI: Startups vs. Established Businesses

58:20 Hg's Growth Strategy

01:02:11 Specializing in B2B Back Office Software

01:04:07 Segmenting Investment Funds by Scale

01:05:59 Expanding into the Wealth Channel

01:07:52 Lessons from Hg Capital Trust

01:08:47 Communicating with a Broader Audience

01:09:25 The Importance of Brand in Wealth Management

01:10:17 Connecting Private Markets to Everyday Life

01:14:02 Hg's Ownership Structure and Growth

01:15:23 Reinvesting Profits for Long-term Growth

01:17:19 Future Growth Opportunities for Hg

01:19:40 The Role of AI in Future Investments

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

Disclaimer

The views and opinions expressed in this episode are those of the speaker and do not necessarily reflect the official policy or position of any affiliated organization.

Any references to past performance, including IRR or MOIC figures, are presented on a gross basis and do not reflect the deduction of fees, expenses, or carried interest. These figures are illustrative and not necessarily indicative of future results.

Statements regarding industry rankings, success rates, or performance consistency are based on internal analysis and may not be independently verified. No representation is made that any investment will or is likely to achieve results comparable to those discussed.

This content is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products.

Join over 12,300 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, General Atlantic, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s conversation brings us beachside, featuring a live podcast from Soho Beach House in Miami with EQT Partner, Head of Private Wealth Americas Peter Aliprantis.

With the backdrop of the beach behind us and the wealth community in the audience, Peter and I discussed the nuances of the wealth channel and how Peter’s experience working with wealth is brought to bear as he brings EQT’s brand and capabilities to the Americas wealth channel.

Peter brings a wealth of knowledge to the private wealth solutions world, garnering over 25 years of experience in the space. Prior to joining EQT, Peter spent 12 years at TPG Angelo Gordon as a Managing Director, where he focused on new business development and intermediary distribution.

Peter and I had a fascinating, lively, and thought-provoking conversation which then turned into an intellectually rich dinner discussion with the guests. Listen in — we hope you enjoy.

You can also read a recent AGM Op-Ed by Peter here.

Many of the themes that Peter discussed in our conversation, particularly around evergreen funds and why model portfolios are the next big innovation in private markets, were covered in his Op-Ed.

Clip #1: Are more allocators looking to invest in Europe and Asia?

Clip #2: How are megatrends in infrastructure changing how investors approach investing in infrastructure?

Clip #3: Being global and local.

A word from AGM podcast sponsor, Juniper Square

When was the last time things were easy for GPs?

Fundraising remains challenging, providing liquidity to investors is even harder—and broadly speaking, most GPs are underwater operationally.

It’s not about to get easier, either. Especially for managers vying for capital from the wealth channel. Sure, there’s increased demand from HNW and UNHW investors to gain private markets exposure…but managing their expectations for the investing experience is a whole different ballgame.

Reams of paper and a new KYC process every single time they subscribe to a fund? Brutal.

But what if committing capital to private equity, venture, and real estate funds was digital and seamless for investors — and scalable to manage for GPs?

Meet Juniper Square, the fund operations partner to over 2,000 private markets GPs worldwide.

Juniper Square gives GPs the connected software, data, and fund administration services needed for modern private markets. No matter how ambitious your next raise is, how many investors you manage, and how complex your investment vehicles are, Juniper Square empowers GPs to raise capital faster, reduce operational risk, and deliver a world-class investor experience.

And with JunieAI, Juniper Square's enterprise-grade AI built for private markets, GPs can truly and finally unlock the power of AI to work smarter, move faster, and focus on relationships and returns.

Scale your business, not your operational burdens and costs. Visit junipersquare.com/agm today to learn more.

Show Notes

00:04 Juniper Square: Revolutionizing Fund Management

01:38 Welcome to the Podcast

01:43 Live from Soho Beach House, Miami with EQT’s Peter Aliprantis

02:43 Navigating Current Markets

03:04 Volatility in Public Markets

04:04 Unprecedented Market Movements

05:09 Global Investment Trends

05:49 Private Markets in Europe and Asia

05:58 Investor Behavior and Global Opportunities

07:55 Private Markets Outperforming in Europe

08:05 The Wealth Channel Evolution

08:35 American Exceptionalism in Investing

08:56 EQT's Global Footprint

09:38 Mega Trends in Global Investing

10:14 Data Centers and Energy Needs

12:13 Natural Gas and Carbon Capture

12:55 Nuclear Energy and Modular Reactors

13:42 Scale in Private Markets

14:09 Evergreen Structures in Private Equity

15:11 Generating Deal Flow and Co-Investment

16:51 Evergreen Structures and Family-Owned Businesses

17:53 Opco Structures Explained

19:21 Institutional Adoption of Evergreen Structures

23:16 Customizing Wealth Channel Allocations

23:28 Model Portfolios in Private Markets

28:02 Servicing Wealth Channel Investors

30:18 Early Days in Wealth Channel Allocations

30:49 Educating Investors on Alternatives

31:27 Benefits of Evergreen Structures

31:58 Quick Fire Questions

32:15 Exciting Strategies in Private Markets

33:13 Concerns in Democratizing Alternatives

34:14 Using Private Markets in Portfolios

35:33 Next Big Innovation: Model Portfolios

35:49 Intersection of Public and Private Markets

36:24 Moving Beyond the 60/40 Portfolio

36:58 Conclusion and Farewell

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

Join over 12,150 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, General Atlantic, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast is with an elite performer on and off the field who has gone from protecting quarterbacks to protecting families’ wealth.

We sit down with former NFL and USC star Winston Justice, whose entrepreneurial spirit that was stoked while he was still playing in the NFL has led to a successful and impactful career in wealth management.

He was recently named CEO at SageSpring Private Wealth, a $7B independent wealth management firm, as they look to grow organically and inorganically and expand their offerings in private markets for their clients.

A former NFL offensive lineman, Winston played for the Philadelphia Eagles, Indianapolis Colts, and Denver Broncos from 2006 to 2015. He also co-founded an early stage investment vehicle, MJC Capital, and Elixr, a gourmet café and coffee roastery, while he was playing. He also won 2010 Walter Payton Philadelphia Man of the Year Award for his community service.

He transitioned into financial services and wealth management post-career, starting at Wells Fargo Securities, where he specialized in institutional and family office advisory. He then was a portfolio manager at PIA’s Alternative Investment Group, and then an investment Manager at AllianceBernstein.

Winston and I had a fascinating conversation. We discussed:

* The parallels between sports and finance.

* How Winston navigated the transition from professional athlete to a finance professional.

* What stoked his entrepreneurial spirit.

* Why wealth management is so critical to people’s lives.

* Why culture fit is so important when integrating advisors into wealth management platforms through acquisition.

* How private markets can add to an advisor’s practice.

Thanks Winston for coming on the show to share your story, wisdom, and expertise.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.

Clip #1: Fear and purpose: how and why I prepared for life after the NFL.

Clip #2: People will talk about anything … but when it comes to their finances, they are very guarded.

Clip #3: What’s the wealth channel’s perspective on working with alternative asset managers?

A word from AGM podcast sponsor, Juniper Square

When was the last time things were easy for GPs?

Fundraising remains challenging, providing liquidity to investors is even harder—and broadly speaking, most GPs are underwater operationally.

It’s not about to get easier, either. Especially for managers vying for capital from the wealth channel. Sure, there’s increased demand from HNW and UNHW investors to gain private markets exposure…but managing their expectations for the investing experience is a whole different ballgame.

Reams of paper and a new KYC process every single time they subscribe to a fund? Brutal.

But what if committing capital to private equity, venture, and real estate funds was digital and seamless for investors — and scalable to manage for GPs?

Meet Juniper Square, the fund operations partner to over 2,000 private markets GPs worldwide.

Juniper Square gives GPs the connected software, data, and fund administration services needed for modern private markets. No matter how ambitious your next raise is, how many investors you manage, and how complex your investment vehicles are, Juniper Square empowers GPs to raise capital faster, reduce operational risk, and deliver a world-class investor experience.

And with JunieAI, Juniper Square's enterprise-grade AI built for private markets, GPs can truly and finally unlock the power of AI to work smarter, move faster, and focus on relationships and returns.

Scale your business, not your operational burdens and costs. Visit junipersquare.com/agm today to learn more.

Show Notes

00:00 Introduction to Alt Goes Mainstream Podcast

00:04 Our Sponsor, Juniper Square: Revolutionizing Fund Management

00:30 Empowering GPS with Juniper Square

00:38 Juniper Square's AI Innovation

00:55 Visit Juniper Square

01:37 Welcome to the Podcast

01:41 Introducing Winston Justice

03:29 Winston's Background and Education

03:52 Starting in Business and Finance

04:24 Transition from NFL to Finance

04:57 Early Career in Financial Services

06:54 The Importance of Wealth Management

07:44 Planning for the Future

07:58 Private Markets and Retirement Solutions

08:13 Building SageSpring

08:32 The Sacredness of Finances

09:28 Managing Assets and Relationships

12:13 Mentoring Advisors at SageSpring

12:51 Client-Focused Advisors

13:56 Balancing Growth and Client Service

18:55 The Role of a True Fiduciary

20:30 Educating Clients on Fiduciary Duty

20:46 Trust in Financial Services

33:02 The Future of Wealth Management

36:13 Winston's Favorite Private Market Investments

38:20 Conclusion and Final Thoughts

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

Join over 12,100 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, General Atlantic, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with someone who has successfully built a wealth solutions business tailored to her firm’s unique strengths, expertise, and investment track record.

Martina Sanow is a Partner at Hg and Head of Hg Wealth, where she is focused on building the firm’s wealth solutions offering built out of the $85B AUM firm, Hg, that invests in enterprise software.

Hg, one of the top 10 largest PE firms globally based on the PEI 300 ranking, has built an impressive investment engine focused mission-critical enterprise software companies. The firm has built a portfolio that is a “transatlantic ecosystem of software and services businesses” — representing over $180B in collective enterprise value across its 55 portfolio companies.

Martina has been at the firm for almost 16 years. She has been an integral part of building the firm into what it is today, helping Hg grow from $2B in AUM to $85B in AUM, previously as Deputy COO and now building the Hg Wealth business. Hg’s first wealth offering, Fusion, its flagship evergreen fund that provides access to non-US investors to Hg’s private equity funds and co-investment opportunities, has exceeded $1B in NAV just 12 months after its launch.

Martina is thoughtful, strategic, and long-term oriented when it comes to building a solution that amplifies Hg’s strengths and resonates with the wealth channel.

We had a fascinating discussion about how a scaled specialist like Hg can stand out in the wealth channel, unpacking the essence of who Hg is as a firm and how they’ve expressed who they are as they’ve built their wealth business.

We covered:

* Hg’s evolution as a firm.

* Why Hg focuses on mission-critical enterprise software companies and why it’s a compelling investment thesis.

* Building a wealth business that fits the mission, ethos, and strategy of the firm.

* Understanding the complexity of evergreen funds.

* How Martina and team think about managing dealflow and investor demand in their Fusion fund.

* Learnings applied from HgTrust, the publicly listed UK investment trust, to figuring out how to educate and build brand in the wealth channel.

* Why does ownership structure matter when it comes to building a wealth business? How being privately owned informs how Hg builds their wealth business.

* Why Europe, why now?

Thanks Martina for coming on the show to share your wisdom and expertise at the intersection of enterprise software, private equity, and private wealth.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.

Clip #1: Software is not a sector anymore. What’s the investment thesis for software investing?

Clip #2: What are mission-critical software businesses and what do you look for in those businesses?

Clip #3: Why and how to build a wealth business?

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.

To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at [email protected].

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction and Message from Ultimus, our Sponsor

01:18 Podcast Opening Theme

01:55 Introduction to Today's Guest: Martina Sanow

04:48 Martina's Journey at Hg: Detailed Discussion

04:55 Hg's Growth and Specialization

05:20 Hg's Entrepreneurial Culture

06:15 Building a Wealth Business Aligned with Hg's Culture

07:22 Importance of Cognitive Diversity

07:48 Building a Diverse and Effective Team

13:21 Hg's Entrepreneurial Culture and Learning

14:34 Specialization in B2B Software

15:01 Focus on Mission Critical Software

17:59 Hg's Investment Criteria

20:14 Case Study: Visma

21:49 Investing in Europe: Challenges and Opportunities

30:10 Hg's Wealth Business Strategy

38:02 Balancing Demand and Deal Flow

38:15 Investment Team Orientation

38:33 Fund Strategies and Co-Investments

39:11 Managing Quarterly Subscriptions

39:40 Growth and NAV Management

40:19 Balancing Wealth and Institutional Demand

40:33 Privately Owned Firm Benefits

41:20 Realization Committee and Evergreen Structure

44:11 Liquidity Management Challenges

47:41 Institutional Investors Adopting Evergreens

49:16 Retail vs. Wealth Investors

50:51 Listed Trust and Wealth Business

52:14 Building the Wealth Business

54:10 Strategic Importance of Wealth Capital

56:45 Innovation and Partnerships in Wealth Space

01:00:29 Brand Building and Education

01:02:29 Software as a Core Investment

01:04:47 Community and Founder Investments

01:07:26 Software Summit and AI Immersion

01:08:20 Value Creation and Network

01:09:16 Portfolio Synergies and Acquisitions

01:10:37 Future of Wealth Business

01:11:11 Favorite Investment: Fusion

01:12:05 Investing Alongside Clients

01:12:59 Conclusion and Final Thoughts

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

Join over 11,800 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 conversation dives into the current state of private markets through the lens of one of the leading GP stakes firms in the industry.

We sat down with Partner and Global Co-Head of the Petershill Group at Goldman Sachs Robert Hamilton Kelly. Petershill takes minority equity stakes in established and newly-established alternative asset managers. Across its different investment vehicles, Petershill participates in the fee income from over 200 underlying funds from alternative asset management firms that are diversified across asset class, investment strategy, and investment lifecycle.

Petershill’s Partner firms have well in excess of $340B in aggregate AUM and they’ve partnered with a number of the top firms and some of the industry's most recognizable names in the middle market and upper end of the market, including Clearlake, Francisco Partners, Permira, Accel-KKR, General Catalyst, Kayne Anderson Real Estate, Kennedy Lewis, and more.

Rob and I had a fascinating conversation on GP stakes and the evolution of alternative asset management. We discussed:

* The what, why, and how of GP stakes.

* The benefits and drawbacks of GP stakes investing for GPs and LPs.

* What makes a great GP.

* The question of liquidity in GP stakes.

* Why Petershill has generally focused on middle-market alternative asset managers.

* How private markets will continue to evolve and the growing importance of the wealth channel in the evolution of asset management.

Thanks Rob for coming on the show to share your wisdom and expertise in private markets and GP stakes. We hope you enjoy.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.

Clip #1: Why is today’s environment “like having sand in the gears?”

Clip #2: Why would an LP invest in GP stakes?

Clip #3: What is the next evolution in GP stakes?

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

01:54 Welcome Back to the Podcast

02:06 Introducing Robert Hamilton Kelly

03:35 Rob's Boat Racing Experience

04:58 Lessons from Boat Racing Applied to Private Markets

05:19 Current State of Private Markets

05:41 Impact of Policy Changes on Private Markets

06:24 Private Markets Focus on Service-Oriented Sectors

07:23 Growth of Private Markets

07:46 Early Days of Petershill

10:30 Goldman's Role in Alternative Asset Management

13:43 Insights on Valuing GP Stakes

14:53 Data-Driven Investment Strategies

16:56 Management Fees and Performance Fees

25:31 Strategic Imperatives for Growth

31:35 Managerial Skills in Private Markets

34:01 Early Stage Investing and Commercial Focus

34:48 Challenges and Opportunities in Capital Raising

35:49 Industry Consolidation and Firm Growth

36:11 The Future of Small and Mid-Market Firms

38:35 The Role of GP Stakes in Wealth Channel Access

40:52 Goldman's Unique Platform and Its Benefits

42:56 The Importance of Capital and Strategic Advice

44:58 Common Challenges Faced by GPs

46:18 Why LPs Invest in GP Stakes

47:45 Income Generation and Capital Growth

48:44 Diversification and Allocation Strategies

50:39 GP Needs and Market Data

51:06 Long-Term Perspectives for LPs

52:19 Portfolio Construction and Market Trends

54:38 Strategic Growth Areas in Private Markets

56:19 Data and Transparency in GP Stakes

58:58 Private Markets Growth Projections

59:25 Valuation and Return Expectations

01:03:12 Liquidity in the GP Stakes Market

01:05:12 Structural Changes in Private Markets

01:05:57 Venture and Growth Sector Evolution

01:06:46 Private Credit Products and Innovation

01:07:21 Maturation of Private Markets

01:07:44 Conclusion and Final Thoughts

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

Join over 11,800 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.