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.

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

01:40 Introducing Nic Humphries

01:56 Hg's Investment Strategy

04:03 Nic's Background and Career Journey

04:46 Engineering Mindset in Investing

05:14 Long-Term Business Thinking

05:58 Hg's Focus on Accounting Software

06:45 Growth Drivers in SMB Market

09:05 Impact of AI on Enterprise Software

09:34 Platform Shifts in Technology

11:10 Adapting to AI in Business

12:15 Mission Critical Software

14:02 Challenges of AI Integration

14:58 Embedding Products and Services

17:13 Organic Growth vs. Acquisitions

20:51 Geographical Expansion Strategies

21:59 European vs. North American Markets

23:30 Management Teams and Expansion

24:32 Jurisdictional Challenges in Europe

25:05 Hg's Investment Philosophy

25:50 Mission Critical Software in Europe

36:22 Hg's Consistent Investment Returns

38:00 Conclusion and Final Thoughts

40:13 Understanding Recurring Revenues

40:59 The Importance of Discipline in Investing

41:48 Learning from Past Experiences

43:30 Maintaining Excitement and Focus

45:26 The Role of Realization Committees

46:44 Continuous Improvement Culture

47:42 The Importance of Cash Returns

48:51 Exit Strategies and Realization Committees

50:32 Re-underwriting Investments

52:40 AI's Impact on Software Development

54:17 The Rule of 40 and AI

54:38 Investing in AI: Startups vs. Established Businesses

55:59 Hg's Growth Strategy

58:56 Specialization in B2B Back Office Software

01:01:35 Fund Structure and Management

01:03:27 Expanding into the Wealth Channel

01:03:48 Hg Capital Trust and Fusion Fund

01:05:27 Communicating with a Broader Audience

01:06:39 The Importance of Brand in Wealth Management

01:07:32 Connecting Private Markets to Everyday Life

01:09:36 The Prevalence of Private Companies

01:11:09 Aligning Interests with Investors

01:12:19 Investment Decisions and Long-term Growth

01:14:21 Future Growth Opportunities for Hg

01:16:38 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 indepe...

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.

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 Alt Goes Mainstream

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

02:43 Navigating Current Markets

02:58 Volatility in Public Markets

04:53 Global Investment Trends

05:16 Investor Behavior and Global Markets

05:32 Private Markets in Europe and Asia

06:43 Investment Opportunities in Asia

07:27 Private Markets Outperforming in Europe

07:37 Wealth Channel Conversations

08:18 EQT's Global Footprint

08:57 Mega Trends in Global Investment

09:29 Data Centers and Energy Needs

11:17 Natural Gas and Carbon Capture

11:57 Nuclear Energy and Modular Reactors

12:43 Investment Scale and Origination

13:06 Evergreen Structures in Private Markets

16:28 Opco Structures Explained

17:15 Evergreen Structures and Investor Access

17:54 Institutional Adoption of Evergreen Structures

21:32 Model Portfolios in Wealth Channel

22:29 Manager Selection and Performance

23:34 Client Servicing and Education

27:43 Early Days in Wealth Channel Allocation

28:39 Benefits and Limitations of Evergreen Structures

29:11 Quick Fire Questions

29:26 Exciting Investment Strategies

30:16 Risks in Private Markets

31:12 Using Private Markets in Portfolios

32:35 Next Big Innovation: Model Portfolios

32:46 Intersection of Public and Private Markets

33:22 Moving Beyond the 60/40 Portfolio

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

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.

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 Our Sponsor, Juniper Square: Revolutionizing Fund Management

00:30 Empowering GPS with Juniper Square

00:38 Juniper Square's AI Innovation

00:51 Scaling Your Business with Juniper Square

01:37 Welcome to the Alt Goes Mainstream Podcast

01:40 Introducing Winston Justice

03:35 Winston's Background and Early Life

03:49 College Years and Initial Business Ventures

03:59 Realization and Transition to Finance

04:10 Starting a VC Fund and Coffee Shops

04:31 Transitioning from NFL to Finance

05:04 Winston's Career at Wells Fargo and Beyond

05:17 Immersing in Wealth Management

07:01 The Sacredness of Financial Management

07:50 Importance of Wealth Management

08:04 Private Markets in Wealth Management

08:19 Early Lessons in Wealth Management

09:10 Transferring Values and Knowledge

09:32 Managing Assets Beyond Numbers

10:19 Combining Finance and Mission

12:11 Mentoring Advisors at SageSpring

12:43 Skill Sets for SageSpring Advisors

12:51 Client Focus and Community Leadership

14:01 Balancing Client Delivery and Business Growth

14:56 Impact of Growing AUM

16:10 Testing Advisors' Commitment

16:55 Business Constructs in Wealth Management

17:43 Division of Labor in Wealth Management

18:52 SageSpring's Unique Approach

19:53 Client Understanding of Fiduciary Role

20:41 Trust in Financial Services

21:17 Sophistication in Choosing Investment Partners

21:57 Role of Relationship in Financial Services

22:30 Evaluating Investment Opportunities

23:44 Partnership with Dynasty Financial

24:43 Customizing Investment Solutions

26:44 Educating Wealth Managers on Private Markets

27:00 Benefits of Alternatives in Portfolios

30:48 Effective Storytelling in Investments

32:13 Future of Wealth Management Industry

33:08 Client and Advisor Service in Wealth Management

34:55 Favorite Private Markets Investment

37:18 Conclusion and Final Thoughts

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

Future Proof, which holds one of the industry’s largest wealth conferences, invited me to hold a live podcast earlier this year with Blue Owl Co-President and Global Head of Real Assets Marc Zahr. 

Marc is a pioneer in the real estate space, building Blue Owl into a market leader in the triple net lease strategy, a commercial real estate investment strategy that is becoming increasingly popular for real estate investors, tenants (think large corporates like Amazon, Walgreens, Dollar General), and investors alike.

Blue Owl’s Real Assets business has over $67.1B AUM, owning over 5,600 assets and partnering with over 800 tenants.
 

Marc founded Oak Street, the predecessor firm to Blue Owl, in 2009 with $17M AUM. Listening to Marc talk about the evolution of his career, building Oak Street, and running Blue Owl’s Real Assets platform, it’s no surprise to see why Marc and the firm have had success. His “myopic focus … perfecting his craft,” as he discussed in our conversation, his clarity of vision, and his ability to so clearly articulate his investment strategy and market opportunity have led to tremendous success for Oak Street, and now, Blue Owl.

Marc and I had a fascinating and thought-provoking discussion that covered everything from the evolution of his firm, how and why he sold Oak Street to Blue Owl, the market opportunity in triple net lease real estate investing, why data center investing is a large market opportunity, how to build a high-performing investment culture, and much more.

We discussed:

• The story of how Marc built Oak Street from a $17M real estate investment firm and grew it into Blue Owl’s $67B AUM Real Assets platform.
• Breaking down the triple net lease real estate investment strategy.
• Why the industry “isn’t even in the first inning” in the $20T addressable market in triple net lease real estate investing.
• Why data centers are a “once in a generation opportunity” due to capex supply / demand imbalance.
• How a bigger platform can help an asset manager scale its business.
• Why an evergreen structure can make sense and the story of how Blue Owl did so well with its triple net lease product on a private wealth platform that the private bank created their own product.
• The hardest part of educating the wealth channel on real estate and evergreen structures.
• Why private wealth is the biggest opportunity in the future. 
• The advice Marc would give to someone trying to build the next great asset manager.

Thanks Marc for sharing your wisdom, expertise, and thoughtful and nuanced perspectives on private markets and real estate. 

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 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.

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

01:55 Welcome to the Podcast

01:58 Introducing Martina Sanow

04:36 Martina's Background and Experience

05:10 Hg's Specialization in Software

05:57 Building a Team and Culture

06:54 Importance of Cognitive Diversity

07:26 Building a Diverse Team

09:28 Innovating in Wealth Business

10:14 Hg's Strategic Mindset

11:51 Hg's Entrepreneurial Journey

12:00 Maintaining Entrepreneurial Culture

13:10 Specialization in B2B Software

14:47 Focus on DPI and Cash Back

16:17 Criteria for A-Quality Businesses

16:58 Investing in Mission Critical Software

18:11 Visma Case Study

19:23 Challenges and Opportunities in Europe

33:13 Evergreen Structures: Impact on Investment Teams

33:44 Balancing Capital Raising and Deal Flow

34:13 Investment Strategies and Allocation

34:54 Managing Subscriptions and Demand

35:53 Balancing Wealth and Institutional Demand

36:06 Privately Owned Firm Benefits

36:37 Realization Committee and Evergreen Structures

37:52 Long-Term Company Partnerships

39:11 Liquidity Management Challenges

39:55 Investor Strategies for Evergreen Funds

41:40 Institutional Adoption of Evergreen Funds

42:48 Evolution of Institutional Mindset

43:26 Retail vs. Wealth Investors

44:01 Listed Trust and Wealth Business Insights

45:54 Building the Wealth Business

47:29 Strategic Importance of Wealth Capital

48:54 Innovation in Wealth Management

49:28 Partnerships and Holistic Solutions

50:58 Future of Wealth Management Products

52:44 Brand Building and Education

55:00 Software as a Core Investment

56:19 Community and Founder Investments

59:28 Value Creation and Network Benefits

01:00:15 Portfolio Synergies and Acquisitions

01:01:36 Concluding Thoughts and Favorite Investments

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

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.

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

01:18 Podcast Opening and Theme

02:06 Guest Introduction: Robert Hamilton Kelly

03:32 Rob's Boat Racing Experience

03:45 Parallels Between Boat Racing and Private Markets

04:57 Current State of Private Markets

05:14 Impact of Policy Changes on Private Markets

06:53 Growth of the Private Markets Industry

07:09 Early Days of Petershill

07:26 Goldman's Role in Alternative Asset Management

09:26 Valuing GP Stakes and Alternative Asset Managers

10:01 Insights on Alternative Asset Managers

12:36 Valuing GP Stakes

13:22 Data-Driven Investment Strategies

15:34 Management Fees and Performance Fees

16:28 Growth and Evolution of Firms

23:16 Strategic Imperatives for Growth

26:15 Managerial Skills and Industry Dynamics

30:55 Commercialization in Platform Management

31:07 Challenges and Opportunities in Capital Raising

31:53 Industry Consolidation Predictions

32:29 Growth and Consolidation in Private Markets

33:31 The Role of Mid-Market Firms

34:15 GP Stakes and Wealth Channel Access

36:12 Goldman's Unique Platform and Services

37:57 The Importance of Strategic Advice

39:39 Common Challenges for GPs

40:33 Evolving LP and GP Stakes Dynamics

40:44 Why LPs Invest in GP Stakes

42:00 Income Generation and Capital Growth

42:49 Diversification in GP Stakes

43:05 Private Markets Exposure

44:01 Entry Points into Private Markets

45:07 Long-Term Exposure and Portfolio Construction

47:00 Investing in Private Credit

48:10 Evaluating GP Stakes Investments

49:38 Data and Performance in GP Stakes

52:04 Growth Path of Private Markets

52:23 Valuing Alternative Asset Managers

55:41 Liquidity in GP Stakes

57:09 Structural Changes in GP Stakes

57:35 The Evolution of Private Markets

58:11 Future of Venture and Growth Sectors

58:56 Private Credit Products and Market Share

59:29 Maturation of Private Markets

59:52 Conclusion and Final Thoughts

Welcome to the 17th episode of the Monthly Alts Pulse, a collaboration between iCapital x Alt Goes Mainstream. 

We were live from iCapital Connect’s conference in Phoenix to dive into the most pressing trends at the intersection of private markets and wealth management —and unpack how wealth management firms are utilizing private markets to build out or enhance their practice.

In this episode of the Monthly Alts Pulse, iCapital Managing Partner and Co-Head of iCapital Solutions, Steve Houston, and I are joined by Eric Harrison, Founding Partner of IEQ Capital.

IEQ, managing close to $40B in AUM, has been an innovator from the start. Private markets — and a customized approach to investing in private markets — are a core part of the IEQ offering — and they’ve differentiated the firm as a result.

Eric and Steve shared a number of thought-provoking perspectives on wealth management and how advisors and clients can approach allocating to private markets as part of a holistic asset allocation framework.

Thanks Eric and Steve for a great episode … looking forward to the next Monthly Alts Pulse conversation!

Show Notes
00:00 Introduction and Guest Introduction
00:24 Experiences in Private Banking
01:28 Independent Advisors and Private Markets
01:46 IEQ Capital's Approach to Private Markets
03:33 Scaling and Research in Alternative Investments
05:48 Client Experience and Customization
07:35 Technology and Tax Strategy
10:46 Innovative Ideas in Private Markets
13:13 Conclusion and Final Thoughts

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with someone who is running the long race — in investing and in running.

We sit down with prolific long distance runner, Blue Owl Capital’s Ivan Zinn, who has been a pioneer in alternative credit and asset-based finance.

Ivan has had a long career in private credit. He started at DLJ before joining Leonard Green & Partners and Highbridge Capital. He then joined HBK before founding pioneering private credit firm Atalaya Capital Management, where he was also the CIO. Ivan and team grew Atalaya to over $10B in AUM from 2006 to 2024 before being acquired by Blue Owl Capital for $450M (and $800M with earnouts).

As part of the transaction, Ivan became Managing Director at Blue Owl and is the Head of Alternative Credit, where the firm is now expanding its footprint due to Atalaya’s expertise. Ivan is as prolific outside of the office as he is in it — he is a long distance runner, running 100 mile races, and was a NCAA All-American tennis player, which comes as no surprise given the discipline, focus and expertise required to excel at the activities he’s done throughout his career in work and sport. He’s also a Board member of the USTA Foundation.
Ivan and I had a fascinating conversation about the evolution of private credit and the growth of asset-based finance. We discussed:

• How and why ABF has grown within the private credit ecosystem.
• ABF’s market structure and a “trip down main street.”
• The potential size of the ABF market.
• Why moving assets off bank balance sheets can help the financial system.
• Why private credit is a data rich asset.
• Where ABF fits in a portfolio.
• Why consumer credit is potentially misunderstood within private credit.

Thanks Ivan for coming on the show to share your wisdom and expertise on private credit and ABF. Good luck to anyone keeping up with you on a long run though!

You can also see a recent Q&A with Ivan about private credit and ABF on AGM here.

Subscribe to Alt Goes Mainstream to receive the weekly newsletter every Sunday and all of AGM’s podcasts.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes
00:00 Introduction and Message from our Sponsor, Ultimus

01:57 Introducing Ivan Zinn

03:49 Parallels Between Running and Business

05:32 Early Days of Private Credit

06:52 Post-GFC Changes in Private Credit

07:31 Evolution of Atalaya's Business Model

08:21 Growth of Asset-Based Finance

09:38 FinTech's Role in Private Credit

11:09 Importance of Stable Capital Sources

21:09 Concentration Risks in Private Credit

22:27 Defining Asset-Based Finance (ABF)

22:53 Different Flavors of ABF

27:43 Investor Exposure and Risk in Private Credit

29:46 Direct Lending vs. Public Credit

36:02 Consumer Credit and Perceived Risks

37:36 Debunking the Cyclical Perception of Credit Risk

38:22 The Utility of Credit Cards During Financial Crises

38:44 The Resilience of ABS and Diversified Portfolios

39:07 The Role of Data Science in Credit Analysis

39:32 Surviving the GFC: A Benchmark for Credit Pools

39:53 Diversification in ABF and Private Credit

40:48 Selective Approach to Consumer Credit

41:36 The Importance of Manager Selection in Credit Investing

42:11 Private Market Transactions and Large Announcements

42:40 The Journey from Atalaya to Blue Owl

43:25 Challenges in Institutional Fundraising and Capital Formation

44:20 The Need for Diverse Capital Sources

45:43 Integration and Cultural Fit with Blue Owl

46:16 The Role of Data Science and Innovation in Credit

50:22 The Wealth Channel and Private Credit

50:50 Private Credit as a Fixed Income Replacement

52:34 Transparency and Market Structure in Private Credit

55:55 Educating Investors on Private Credit

57:48 The Evolution and Adoption of ABF

01:00:15 The Growth of Private Credit Market

01:01:28 Challenges and Opportunities in Private Credit

01:03:45 The Importance of Scale in Credit Investing

01:04:28 Vertical Integration in Financing

01:05:26 Relentless Forward Progress in Credit Investing

01:06:31 Memorable Investments and Risk-Reward Balance

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

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with the CIO of an insurance company responsible for more than $300B in assets and a major focus on private markets.

Lincoln Financial EVP and CIO Jayson Bronchetti and I sat down recently at Lincon Financial’s headquarters in Radnor, Pennsylvania to discuss the increasing involvement of insurance companies in private markets.

Jayson, who is a member of Lincoln Financial’s Senior Management Committee and serves as the primary investment officer to Lincoln’s Board of Directors on all investment-related matters, is responsible for more than $300B in assets across the general account portfolio and the separate account mutual fund complex. He’s also chairman of the board of directors of the Lincoln Variable Insurance Product Trust family of over 100 mutual funds. He's also on the board of the Lincoln Financial Foundation.

Fresh off recent partnerships with Bain Capital and Partners Group on private markets investment products and Bain Capital taking a stake in Lincoln’s business, Jayson and I had a fascinating conversation about how insurance companies can approach private markets and how they can build unique and differentiated partnerships with asset managers.

We discussed:

• The evolving role of insurance companies as LPs in private markets.
• Why asset and liability matching is a critical framework to allocating to private markets.
• How the general account of an insurance company creates interesting opportunities for strategic relationships and partnerships with alternative asset managers.
• The benefit of having a business that works with financial advisors and individuals.
• The importance of educating wholesalers about private markets – and why insurance wholesalers might have an advantage in educating advisors and clients about private markets products and strategies.

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

Subscribe to Alt Goes Mainstream to receive the weekly newsletter every Sunday and all of AGM’s podcasts.

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
00:40 Introduction to Jayson Bronchetti

02:20 Sponsor Message: Ultimus Fund Solutions

03:37 Welcome to the Podcast

04:03 Jayson's Background in Private Markets

04:57 Evolution of Insurance Companies in Private Markets

06:37 Symbiotic Relationship Between GPs and Insurers

08:40 Understanding Liquidity and Illiquidity

11:19 Diligencing Private Markets Managers

13:25 Balancing Scale and Performance

14:09 Boots on the Ground: Sourcing Edge

14:42 Evolution of Alternative Asset Managers

14:53 Lincoln's Unique Position in the Market

19:32 Strategic Partnerships with Bain and Partners Group

20:03 The Value of Distribution Relationships

22:14 The Democratization of Alternative Investments

22:49 The Intersection of Private Markets, Wealth, and Insurance

23:10 Approaching Private Markets with the General Account

24:18 Launching Strategies with Bain and Partners Group

24:50 Incubating New Strategies for Retail Consumers

25:16 Building a Customized Investment Strategy

25:45 Designing Purposeful Investment Funds

26:00 Ensuring Accessibility and Proper Wrappers

26:08 Liquidity and Product Matching

26:15 Seeding Strategies with the General Account

26:58 One Lincoln Approach

27:12 Finding Opportunities in the Seams

27:46 Balancing General Account and Distribution Needs

28:07 Product Innovation in the Wealth Channel

28:53 Healthy Tension in Product Design

31:51 Importance of Asset Liability Management

33:05 Educating the Distribution Team

34:47 Training Modules for Wholesalers

36:28 Boots on the Ground: The Power of Relationships

37:45 Simplifying Complex Products

40:44 Democratizing Alternative Investments

41:10 Straddling Institutional and Individual Mindsets

41:35 Integrating Private Markets into Retirement Products

43:13 Future of Private Markets in Retirement Portfolios

43:57 Product Innovation and Technology

45:15 Private Markets in Insurance Products

47:16 Focus on Private Credit

49:38 Risks in Private Credit

50:29 Excitement for the Future of Private Markets

51:01 Conclusion and Final Thoughts

Disclosure from Lincoln Financial

Registration statements for each of the evergreen funds have been filed with the Securities and Exchange Commission and are available from the EDGAR database on the SEC's website (www.sec.gov). The information in the registration statements is not complete and may be changed. The securities of neither fund may be sold until its registration statement is effective. An investor should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information about each fund will be contained in the fund's final prospectus, which investors should read carefully when available from t...

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode digs into how the CIO of a growing multi-billion dollar wealth management firm thinks about customization and differentiation by building out private markets capabilities.

We sat down with John McArthur, Senior Partner and CIO at $3.6B AUM Krilogy. Founded in 2009, Krilogy provides comprehensive financial planning and investment management services to HNW individuals, families, and business owners.

Krilogy is charting a growth path — and to chart a growth path, John and his team are thinking about how they can thoughtfully grow their business.

With John at the helm as CIO, they have been strategic with their approach to private markets and have increasingly focused on ways that they can create customized and differentiated solutions for their clients.

John took 11 years of experience in wealth management and financial planning at A.G. Edwards & Sons and Morgan Stanley Smith Barney to Krilogy, where he joined his former University of Missouri college football teammate, Kent Skornia, to help quarterback Krilogy and their clients to financial success.

John is thoughtful in his approach to private markets and how to provide solutions to their clients. We had a fascinating discussion about how wealth management is evolving and how private markets are critical to growing a wealth management practice. We discussed:

• How John and team have grown and scaled an independent wealth management firm.
• How John approaches private markets — and how that approach has evolved as they work with clients of greater size.
• How to balance customization and differentiation with scale.
• How can asset managers effectively educate and provide solutions to the wealth channel?
• What’s still missing from private markets solutions for the wealth channel?
• His views on product innovation, including evergreen funds.
• Advice John would give to wealth advisors looking to invest in private markets.

Thanks John for coming on the show to share your wisdom and expertise on wealth management and private markets.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes
00:00 Introduction and Message from our Sponsor, Ultimus Fund Solutions

01:54 Welcome to Alt Goes Mainstream

02:06 Introducing John McArthur

03:51 John's Journey into Wealth Management

04:23 The Role of Sports in John's Career

05:47 Lessons from Big Wealth Management Firms

06:21 Krilogy's Growth and Strategy

07:25 Challenges and Opportunities in Wealth Management

07:36 Private Markets and Customization

08:04 Growth Strategies and Quality Control

09:29 Client Service and Organic Growth

11:26 Differentiating Wealth Management Offerings

12:23 Importance of Private Markets

13:14 Creating Customized Solutions

14:53 Educating Advisors on Private Markets

15:54 Volatility and Market Changes

17:04 Private Markets in a New Economic Environment

17:24 Building a Diverse Private Fund

19:50 Client Understanding of Private Markets

20:25 Educating Advisors and Clients

22:15 Behavioral Bias in Investing

23:42 Long-Term Investing Mindset

24:08 Compounding and Diversification

24:41 Challenges in Advisor Education

25:46 Effective Education Strategies

27:01 The Role of Storytelling in Education

27:22 Future of Education in Wealth Management

27:35 Sourcing and Access in Private Markets

28:46 Networking and Building Trust

29:26 Customization and Differentiation in Wealth Management

30:34 Combining Big Brands and Niche Funds

31:47 The Importance of Being in the Game

32:13 Advice for Wealth Managers

32:24 Evergreen Fund Structures

33:16 Navigating the Evergreen Environment

34:29 Portfolio Construction in Private Markets

35:25 Operational Benefits of Evergreen Funds

36:05 Model Portfolios in Wealth Management

36:53 Favorite and Contrarian Investment Ideas

38:49 Real Estate Market Opportunities

39:09 Large vs. Niche Real Estate Managers

39:52 Conclusion and Final Thoughts

Disclosure from Krilogy

Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not a guarantee of future results. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.

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