Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets

Welcome back to the Alt Goes Mainstream podcast.

Today’s guest is an expert in financial services and capital markets who has experience as both a strategic investor and a VC.

We welcome Rana Yared, a General Partner at Balderton, where she co-leads their Growth Fund. She came to Balderton in 2020 from across the pond, where she was a Partner at Goldman Sachs, first in the Principal Strategic Investments Group, a balance sheet investing team, and later in GS Growth, when the group became part of the GS Growth efforts that began to take in outside LP capital. At Goldman, Rana oversaw investments in Financial Technology and Enterprise Technology as well as the commercialization of Goldman’s technology assets in both NYC and London. She represented Goldman on the boards of Tradeweb, NAV, Vestwell, New York Shipping Exchange, and Swapclear @ LCH. She currently serves on the board of Tradeweb in an independent capacity.

Coming off of a fundraise of $1.3B in new capital across early and growth stage funds at Balderton, Rana and I discussed what LPs were interested in and why Europe is a compelling investment ecosystem. We had a fascinating discussion about:

• Revolutionary and evolutionary innovations in financial services and private markets, including the likes of iCapital, Tradeweb, Revolut.
• Why global tech companies can be built in Europe, with Revolut, a Balderton portfolio company, as an example.
• Why London and Europe are compelling fintech and financial services ecosystems.
• How LPs should look at the European investment opportunity.
• Differences and benefits / drawbacks of being a strategic / permanent capital investor versus being an independent VC fund.
• The importance of being a risk manager in venture.

Thanks Rana for coming on the show to share your wisdom and views on Europe, venture, and private markets. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction and Ultimus Sponsor Message

01:59 Introducing Balderton Capital Partner, Rana Yared

04:16 Rana's Journey from Goldman Sachs to Balderton

04:25 Transition from Investment Banking to VC

06:26 Insights on Financial Services and Market Structure

06:37 Investing in Market Structure

09:05 Disruptive vs. Evolutionary Innovations in Fintech

12:53 Partnering with Incumbents

14:31 The Importance of Durability and Product Velocity

18:11 Strategic Investing vs. Venture Capital

21:21 Investing in the European Ecosystem

27:06 The Exciting Potential of Revolut and European FinTech

27:21 FinTech Giants in Germany

27:54 European Companies' International Advantage

28:55 Investor's Perspective on European Expansion

29:48 The Role of Venture Capital in Europe

29:22 Challenges and Strategies for European Investors

30:20 The Importance of Local Presence

30:55 The Future of European Ecosystems

31:28 US VCs Entering Europe

32:15 Bridging the Talent Gap

34:02 Mentorship and Expertise

35:52 The Role of LPs and European Investment Opportunities

37:23 Challenges for European Pensions and Endowments

38:49 Innovations in Fund Structures

41:27 The Impact of Governmental Participation in Venture

42:22 Exciting Opportunities in European Venture

43:10 FinTech's Massive Potential

43:59 Europe's Unique Financial Services Advantages

44:53 Geopolitical Concerns for Investors

45:51 Lessons from War Studies Applied to Investing

47:11 The Future of Retirement Investments in Europe

49:13 The Importance of Patience in Investing

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with someone who has experienced the growth and evolution of the credit space from different vantage points.

We welcome Alona Gornick, a Managing Director, Senior Investment Strategist, and Co-Head of the Chicago Office for Churchill Asset Management, a firm with $50B committed capital that is a provider of financing solutions to middle market private equity firms and their portfolio companies. Churchill is an investment-specialist affiliate of Nuveen, the asset manager of TIAA.

Alona provides investment insights across the private capital spectrum to the investment community – and has a particular focus on working with the Private Wealth and Retail channels. She works closely with Nuveen’s global distribution team to deepen relationships with and educate Churchill’s investors and partners.

Alona leverages her experience in capital markets, investor relations, and credit investing from working at the likes of Nuveen, Golden Gate Capital, and Oaktree Capital Management.

Alona and I had a fascinating conversation. We discussed:

• The evolution of credit investing.
• The opportunities and risks in private credit. 
• Are we in a private credit bubble?
• Why the product specialist role is critical for working with the wealth channel.
• The power of scale, particularly in private credit, and how it helps alternative asset managers win deals and invest.
• The strategic benefit of platforms and permanent capital.

Thanks Alona for coming on the show to share your views and wisdom on private markets. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction to Ultimus Fund Solutions

01:18 Welcome to the Podcast

02:00 Guest Introduction: Alona Gornick

03:45 Alona's Career Path and Experience

06:59 Growth of Middle Market Direct Lending

07:41 Changes in the Credit Landscape

10:21 The Importance of Size and Scale in Private Credit

13:27 Deal Structuring and Market Evolution

14:46 Impact of High Rate Environment

16:06 Private Credit Returns and Underwriting

20:53 Investor Questions and Market Insights

21:24 Educating Investors on Private Credit

23:43 Private Credit in Wealth Portfolios

24:09 Diversification Benefits of Private Credit

24:24 Yield Premium in Private Credit

26:40 Private Credit vs. Private Equity

27:06 Exploring Private Equity and Private Debt

27:24 Transitioning from Public to Private Credit

27:49 The Role of a Product Specialist

28:09 Balancing Risks and Benefits

28:49 Relating to Advisors with Real Examples

29:40 The Importance of Education in Allocation

30:25 Diverse Viewpoints on Alternative Asset Managers

31:48 Challenges in Access to Capital

33:26 The Significance of Hiring Quality People

34:12 Non-Traditional Backgrounds in Specialist Roles

36:29 Patience and Commitment in Educating Investors

39:13 The Hardest Part of Educating the Wealth Channel

40:47 The Role of Structure in Education

44:21 Concerns About the Future of Private Credit

47:00 The Growth Potential of Private Credit

49:38 The Most Interesting Alternative Investment

50:15 The Opportunity in Private Equity Secondaries

52:47 Private Credit Secondaries: A Nascent Space

54:17 Primary and Secondary Considerations in Credit

54:34 Conclusion and Final Thoughts

Today marks the launch of a new show on Alt Goes Mainstream: What’s Your Edge?

Every person, every company, every fund has something that makes them special.

Makes them stand out from the crowd.

Gives them an unfair advantage.

Tips the scales in favor of success.

In this episode,  I ask our special guest, Bob Long, “What’s Your Edge?”

Bob Long is CEO of StepStone Group’s Stepstone Private Wealth. He has three decades of experience in the private markets and has led investment teams for global firms in both the general partner and the limited partner role. He has served as the CEO of two publicly-traded companies focused on expanding private market access for high net worth investors.

Prior to StepStone Private Wealth, Bob was the CEO of OHA Investment Corporation, a publicly-traded specialty finance company. Previously, he co-founded Conversus Capital, the largest publicly traded fund of third-party private equity funds with $3 billion of AUM and served as its CEO. Previously, he led Bank of America’s $7 billion strategic capital division. Early in his career, Bob served as the lead in-house counsel for a large portion of Bank of America’s Investment Banking Division and worked as a securities lawyer for a major law firm.

A recognized industry leader, Bob was named one of 50 “GameChangers” by Private Equity International, has been profiled in the WSJ, and hosted CNBC Squawk Box Europe on numerous occasions.

On today’s podcast, Bob and I discuss the nuances of evergreen funds and the unique features and offerings of StepStone Private Wealth’s evergreen strategies.

Thanks Bob for coming on the show to share your wisdom, experience, and your edge.

Show Notes
00:00 Introduction

00:38 Welcome to What's Your Edge?

01:01 Meet StepStone Private Wealth CEO Bob Long: A Leader in Private Markets

03:09 Lessons from Public Markets

04:34 Evergreen Fund Structure

05:27 Benefits of Evergreen Funds

06:25 Immediate Investment Advantage

07:20 Evergreen Funds and Financial Advisors

07:35 Evergreen Fund Liquidity

08:04 StepStone's Approach to Evergreen Funds

09:09 StepStone's Strategy and Structure

09:32 Balancing Inflows and Outflows

10:34 Importance of Deal Flow

11:04 Balancing Liquidity and Returns

11:56 StepStone's Competitive Advantage

13:52 Portfolio Construction

14:57 Diversification in Private Markets

16:06 Evergreen Fund Structures

19:44 Liquidity in Private Markets

27:57 Key Takeaways for Investors

29:53 Operational Due Diligence Essentials

30:13 Key Questions for Evergreen Fund Structures

30:36 Understanding Fee Structures

30:42 Management Fees and Leverage

31:33 Incentive Fees Explained

32:19 Administrative Costs and Transparency

32:34 Fee Compression in Evergreen Funds

34:11 Portfolio Construction Strategies

34:24 Investing in Secondaries

37:10 Psychology of Allocators

38:04 Accessibility and Minimum Investments

38:43 Investor Profiles and Strategies

40:36 Transparency and Performance

41:40 Rebalancing and Evergreen Funds

43:10 Model Portfolios and Private Markets

45:19 StepStone's Investor-Centric Approach

46:15 StepStone's Competitive Edge

48:31 Growth of Secondaries and Private Markets

51:37 Future Trends in Private Markets

55:30 Philanthropy and Purposeful Stewardship

Welcome back to the Alt Goes Mainstream podcast.

Today’s show features a guest who brings a wealth of common sense to wealth management and asset allocation.

We talk with Ben Carlson, the Director of Institutional Asset Management at Ritholtz Wealth Management, a $5B AUM wealth management firm. He’s managed institutional portfolios for his entire career. He started out with an institutional investment consulting firm, where he deployed portfolio strategies and created investment plans for foundations, endowments, pensions, hospitals, insurance companies, and HNW individuals. More recently, he was part of the portfolio management team for an investment office that managed a large endowment fund for a charitable organization.

Ben is a student of markets and asset allocation, which is clear from the knowledge he shares daily and weekly with his blog, A Wealth of Common Sense, and his podcast Animal Spirits with Michael Batnick and Ben Carlson. He’s also authored four books about saving, investing, and money. He was named to the Investment News 40 Under 40 list of top financial advisors in 2017.

Ben and I had a fascinating conversation about the adoption of alternatives in the wealth channel and the whys and hows of asset allocation. We discussed:

• Why asset allocation is the most important aspect of an investment plan.
• The question of whether or not investors now have too much choice?
• Why Ben documents every investment decision he makes.
• The benefits of private markets and the pitfalls of private markets.
• His biggest lesson learned in investing.
• Why crypto has helped younger investors become more comfortable with volatility (for better or worse).
• The future of wealth management and what won’t change about the advisor / client relationship.
• The power of content creation and how it helps him approach investing.

Thanks Ben for coming on the show to share your wisdom and experience in investing and asset allocation. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes
00:00 Sponsor: Introduction to Ultimus Fund Solutions

01:56 Meet Ben Carlson: Wealth Management Expert

02:17 Ben Carlson's Career Journey

02:55 Insights on Asset Allocation

03:11 The Importance of Documenting Investment Decisions

03:14 Private Markets: Benefits and Pitfalls

04:34 Early Career Lessons

04:58 Asset Allocation Strategies

06:06 Navigating Investment Choices

07:10 The Complexity of Investment Strategies

09:46 Institutional vs. Wealth Management

10:19 Communication in Institutional Investing

12:35 The 60/40 Portfolio Debate

23:20 Advisors and Alternatives

27:17 Thresholds for Investing

27:48 Differentiating Through Culture

28:41 Defining and Evaluating Culture

29:20 Transparency and Client Relationships

29:57 Partnering with the Right Clients

30:19 Qualitative Manager Selection

31:53 Content Creation and Transparency

34:22 Building a Brand from Scratch

37:49 Advice for Young Advisors

39:31 Compounding in Private Markets

40:06 Behavioral Benefits of Private Markets

41:17 Excitement in Private Markets

41:56 Evolving Fund Structures

42:28 Defining Alternatives

43:48 Younger Investors and Volatility

46:55 Future of Wealth Management

47:53 Private Equity in Wealth Management

48:58 Favorite Alternative Investments

51:44 Conclusion and Final Thoughts

Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast illustrates just how far private markets have come. We dive into the world of GP stakes with Sean Ward, Senior Managing Director from Blue Owl’s GP Strategic Capital Platform, where he was a founding partner and is responsible for helping to oversee the firm that has done the lion’s share of GP stakes investing.

Blue Owl’s GP Strategic Capital business, which started out as Dyal Capital Partners, has accounted for over 61% of the total capital raised in the GP stakes space, closing on over $33.3B across their 7 funds and managing $57.8B AUM. They’ve taken minority ownership stakes in many of the industry’s leading alternative asset managers, accounting for 85%+ of all GP stakes deals $600M or greater in size.

Sean is a Senior Managing Director of Blue Owl Capital, Inc. and a member of the firm’s Board of Directors. He also serves as a member of the GP Strategic Capital Investment Team. Prior to joining Dyal Capital Partners, the predecessor firm to Blue Owl’s GP Strategic Capital platform, Sean was a Vice President at Lehman Brothers and held several roles at Neuberger Berman after it became an independent firm, including Senior Counsel for Neuberger’s alternatives business. Sean was also a lawyer at Covington & Burling LLP and Davis Polk & Wardwell LLP.

Sean and I had a fascinating conversation about the evolution of private markets through the parallel evolution of the GP stakes space.  We discussed:

• The early days of the GP stakes industry.
• What it was like to convince GPs and LPs why stakes made sense.
• How the $1B GP commitment by Bain Capital in their fund post-GFC really opened everyone’s eyes to the need to tap into financing as firms grew their fund size and their business.
• A “cash in” rather than a “cash out.” Why GP stakes investing is mainly about positive selection since managers are choosing to sell a stake in their business.
• How alternative asset management has evolved as a business.
• How GP stakes investments have elements of bond-like coupons from cashflows due to management fees and option value from the upside of carry.
• Why GP stakes investments are “the most diversified single line item investment one can make in private markets.”
• Where allocators bucket GP stakes investments.
• What makes a great GP stakes investor.
• The power of permanent capital.
• The different paths to liquidity in GP stakes investments.

Thanks Sean for coming on the show to share your views and wisdom on private markets. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction and Sponsor Message

01:17 Podcast Opening and Theme

02:00 Guest Introduction: Sean Ward from Blue Owl GP Strategic Capital

04:21 Sean Ward's Career Journey

05:14 The Evolution of GP Stakes Investing

06:23 The Start of GP Stakes at Blue Owl

06:57 Raising the First Fund

07:09 The Growth of Blue Owl's GP Stakes

07:31 The Importance of Legal Background in GP Stakes

09:48 Convincing LPs and GPs

11:14 The Importance of GP Commitments

15:23 Strategic Value Beyond Capital

24:45 Succession Planning in Private Equity

26:02 Impact of Market Conditions on GP Stakes

29:26 Underwriting and Returns in GP Stakes

36:33 Cash Flow and Diversification in GP Stakes Investments

37:48 Understanding the Trade-offs in GP Stakes Investing

38:35 Narrow Distribution of Potential Outcomes

40:09 The Importance of Diverse Professional Backgrounds

40:45 Collaborative Partnerships in GP Stakes

41:34 Traits of a Great Alternative Asset Manager

43:49 The Next Frontier: Private Wealth

45:13 Middle Market Strategy and Partnerships

49:34 The Evolution and Future of Private Markets

53:19 Liquidity in GP Stakes Investments

58:26 The Power of Permanent Capital

01:00:28 Is GP Stakes Better Than SaaS?

01:02:43 Exemplary Models for Growth in Asset Management

01:05:47 Conclusion and Final Thoughts

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode welcomes two elite performers in Steve Young of HGGC and Scott Wood of True North Advisors, where they talk about how they formed a partnership based on shared values.

Steve’s private equity firm, $7B AUM HGGC, took a minority stake in Scott’s independent wealth management firm, $3.9B AUM True North Advisors, as part of their broader wealth management investment thesis.

After an illustrious 15 year Hall of Fame career as a three-time Super Bowl winning quarterback of the San Francisco 49ers, Steve embarked on second act to found HGGC that has rivaled his career on the field. Over the past 17 years, HGGC has grown to a $7B private equity firm that has completed 600 portfolio investments.

After working on Wall Street where clients were not being fiduciarily served, Scott's journey as a registered independent advisor started in 2000, when he and his partner Mark Gehlbach decided to pioneer the fee-only  model to eliminate conflicts of interest in the client advisor relationship. The foundation they built has led to the growth of a firm that now stands at over 3.9B in AUM, with a large portion of that capital, $812M allocated to alternatives. 

Steve, Scott, and I had a fascinating conversation about how they’ve built their respective investment firms, the importance of values and culture, and how they create abundant, fulfilling relationships. We discussed:

• Why “the score takes care of itself.”
• How and why defining the relationship up front is key in advisor M&A.
• How to assess culture fit when merging or acquiring advisors and wealth management firms.
• The importance of alternatives for better serving the client in an advisor’s practice.
• The concept of “decading” and why long-term thinking is critical in business and life.

Thanks Steve and Scott for sharing your thoughts and decades of wisdom on business building, investing, and partnership.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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

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

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

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction and Sponsor Message

01:17 Welcome to the Podcast

01:59 Meet the Guests: Steve Young and Scott Wood

02:22 Steve Young's Journey from the NFL to Private Equity

06:13 Scott Wood's Path to Founding True North Advisors

09:13 Building a Scalable and Collaborative Wealth Management Firm

12:22 Need for a Partner

12:57 Choosing HGGC: The Importance of Culture and Values in Business

13:30 HGGC's Investment Philosophy

15:03 Cultural Alignment in Partnerships

22:25 Evaluating Cultural Fit in Partnerships

22:40 Evaluating Cultural Fit

27:12 Governance and Day Two Operations

27:53 Commitment to Cultural Integrity

28:19 Navigating Cultural Fit in Wealth Management

28:55 Wealth Management Growth and Consolidation

29:40 The Role of Private Equity in Wealth Management

30:03 Changing Wealth Management Engagement

31:07 Challenges and Opportunities in Wealth Management Consolidation

32:22 True North's Unique Business Model

33:01 The Impact of Private Equity on Wealth Management

34:42 Exit Strategies and Long-Term Vision

39:39 Building an Alternatives Platform

40:31 Decading: Long-Term Thinking

40:53 Evolution of Alternatives Strategy

45:13 Simplifying Complex Investments

46:37 Fee Structures and Client Alignment

47:24 M&A Opportunities and Relationships

48:37 Mentorship and Professional Relationships

52:56 Future of Alternative Investments

55:56 Closing Thoughts and Reflections

Today marks the launch of a new show on Alt Goes Mainstream: Going Public with Evercore’s Glenn Schorr.

17 years ago, there wasn’t a single alternative asset manager that was part of the public markets. Today, not only are a number of the industry’s largest firms public, but in 2024, the industry’s largest alternative asset manager, Blackstone, entered the S&P 500.

Understanding the inner workings, strategic moves, and financial performance of the industry’s largest players can help to explain many of the trends that are making alternatives become mainstream and these firms become mainstays in the financial services ecosystem.

Going Public will make private markets more public with expert analysis.

Glenn Schorr is a Senior MD and Senior Research Analyst at Evercore ISI, where he covers brokers, banks, asset managers, and trust banks as an analyst. 

He has covered financials since 2000 and started coverage of alternative asset managers when the first firms went public.

He’s consistently come up as one of the most thoughtful and well-respected analysts in the space. He balances deep research with a creative flair (just read one of the titles of his research reports and you can see his love of the game). He’s been named to Institutional Investor’s All-America Research Team for his coverage, most recently ranking #2 and runner up in 2023, #1 and #2 in 2022. Prior to Evercore, Glenn was a Senior MD at Nomura, serving as the lead financials analyst. 

Listen in as Glenn shares market stories, the evolution of alternative asset managers as businesses, the biggest and most exciting trends in private markets based on what the industry’s largest players are doing, and we go “around the horn” for his analysis on the publicly traded firms. 

Show Notes

00:38 Introduction to the Going Public Series and award-winning Wall Street Analyst, Glenn Schorr

01:54 Glenn's Career Journey

03:08 The Early Days of Alts Managers Going Public

03:26 Skepticism and Challenges in Going Public

04:06 Investor Skepticism and Challenges

07:00 Transformation and Tipping Points

09:03 Structural Tailwinds and Market Trends

10:57 The Decision to Go Public vs. Staying Private

12:39 Ambition and Vision in Asset Management

14:51 The Distribution vs. Manufacturing Debate

17:03 Lessons from Traditional Asset Management

18:55 Discipline and Growth in the Alts Market

20:03 The Future of Public and Private Markets

20:50 The Role of Distribution in Asset Management

21:59 Success Stories and Acquisition Strategies

23:02 Manufacturing Competency vs. Acquisitions

24:40 The Rise of Private Markets

26:07 How Alternative Managers Make Money

27:02 Valuation Factors for Alternative Managers

28:44 Profitability and Margins in Asset Management

29:23 Building a Business: Costs and Competitive Advantages

29:50 The Moat of Success in Business

30:15 Challenges for Traditional Asset Managers

30:56 The Importance of Vision and Technology

31:22 Scaling a Business with Proven Success

31:40 Insurance Asset Management: Strategic Moves and Structural Advantages

32:17 Structural Advantages in Asset Management

33:05 The Rise of Private Credit Managers

34:43 The Impact of Interest Rates on Private Credit Managers

35:32 Navigating Rate Sensitivity in Capital Markets

38:25 Deployment and Monetization in Asset Management

39:08 The Challenge of Dry Powder in Private Equity

41:14 The Role of Deployment in Investment Success

41:46 The Resilience of Publicly Traded Alts Managers

43:26 Spotlight on Blackstone's Growth and Innovation

46:38 KKR's Global Expansion and Innovation

48:41 Apollo's Market Leadership and Challenges

50:11 Blue Owl's Strategic Investments and Challenges

53:56 TPG's Public Transition and Growth

55:11 Carlyle’s Progress and Future Challenges

56:11 Looking Ahead: Key Trends and Expectations

Disclosures

Evercore ISI

Glenn Schorr

Company Coverage and Disclosures

Ticker      Company

APO         Apollo Global Management, Inc.

BAC         Bank of America Corporation

Glenn Schorr holds a long position in equity securities of Bank of America Corporation.

BK            Bank of New York Mellon Corp.

Glenn Schorr holds a long position in equity securities of Bank of New York Mellon Corp.

BLK          BlackRock, Inc.

Glenn Schorr holds a long position in equity securities of BlackRock Inc.

BX            Blackstone, Inc.

Blackstone, Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Blackstone, Inc. in the last 12 months.

Evercore ISI or an affiliate expects to receive or intends to seek compensation for investment banking services from Blackstone, Inc. within the next three months.

An employee, employee's immediate family member, director or consultant of Evercore ISI or one of its affiliates (but not the covering research analyst or a member of the covering re advisory board member of Blackstone, Inc..

Evercore ISI or an affiliate has received compensation from Blackstone, Inc. for investment banking services in the last 12 months.

Analyst has a financial interest in a private equity fund managed by Blackstone, Inc.

Glenn Schorr holds a long position in equity securities of Blackstone, Inc.

OWL         Blue Owl Capital, Inc.

Evercore ISI or an affiliate has acted as a manager or co-manager of a public offering of securities by Blue Owl Capital, Inc in the last 12 months.

Blue Owl Capital, Inc is a client of Evercore LLC, and Evercore LLC has provided investment banking services to Blue Owl Capital, Inc in the last 12 months.

Evercore ISI or an affiliate has received compensation from Blue Owl Capital, Inc for investment banking services in the last 12 months.

BSIG        BrightSphere Investment

C               Citigroup, Inc.

An employee, employee's immediate family member, director or consultant of Evercore ISI or one of its affiliates (but not the covering research analyst or a member of the covering re advisory board member of Citigroup, Inc.

Glenn Schorr holds a long position in equity securities of Citigroup, Inc.

BEN          Franklin Resources, Inc.

Glenn Schorr holds a long position in equity securities of Franklin Resources, Inc.

GS            Goldman Sachs Group Inc.

IVZ           Invesco Ltd.

JPM        &nb...

Welcome to the 12th episode of the Monthly Alts Pulse, a collaboration between iCapital x Alt Goes Mainstream.

This month’s episode features one of iCapital’s senior executives, Eileen Duff, Managing Partner & Chief Client Success Officer, and a private markets veteran who was Head of Alternative Investments, North America for Credit Suisse for a number of years. At iCapital, she oversees Investor Relations, Enterprise Integration, and Client Operations teams to optimize the client experience. Eileen has had a number of senior and instrumental roles at iCapital. She's also a member of iCapital's Operating Committee. She was previously Head of Fund Management & Research for iCapital, where she was responsible for origination and development of new investment products and lifecycle management of existing offerings. She also led Distribution for iCapital, leading the sales and relationship management function after joining from Credit Suisse.

iCapital, as the leading platform that is responsible for the majority of individual and advisor-led investment flows into the alts space, has its finger on the pulse of what’s happening in private markets.

Eileen and I had a fascinating and lively discussion about how technology innovation, and AI and automation in particular, are revolutionizing alternative investments and how technology can drive growth and operational efficiency. 

We covered:

• How and why alternatives distribution has evolved. 
• The importance of meeting clients where they are.
• The evolution of wealth channel strategies.
• How much does structure matter?
• When and why Eileen saw registered funds as a major driver of the future growth of private markets well before they became mainstream.
• The impact of registered and evergreen funds on operations and fund administration.
• Where will the biggest efficiencies come from in the automation of post-investment processes?
• How AI and automation will enhance operational efficiency?

Thanks Eileen for a great episode … looking forward to next month’s Monthly Alts Pulse conversation!

Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast dives into the continued innovation in the GP stakes space with someone who has advised some of the industry’s largest firms on their businesses and going public.

We are joined by Todd Owens, the Co-Founder and Managing Partner of Cantilever Group. 

Cantilever is an independent firm focused on providing capital solutions to middle market asset managers. Their capital can be used to accelerate growth, support acquisitions or liftouts, fund GP commitments, seed new strategies, facilitate generational ownership transfer, and provide liquidity to founders. They focus on businesses that have enterprise values between $50mm and $500mm. The team has executed on over $500M of GP stake, financing, and seeding transactions as both investors and principals. Their advisory experience working with stakes funds includes over 15 GP stakes transactions, multiple GP stakes portfolio financings, numerous GP and BDC IPOs, and dozens of asset management financing and control transactions.

Cantilever is working with two strategic partners as they build their firm: BTG Pactual, the near $30B market cap Brazilian bank and wealth and asset manager has committed 9 figures into Cantilever’s fund, and Broadhaven Ventures, the venture capital arm of Broadhaven Capital Partners.

Todd has over 30 years of experience as an advisor covering financial institutions and as a senior financial services executive. Prior to founding Cantilever, Todd has been a partner at Broadhaven Capital Partners, an independent financial services focused investment bank that’s completed over $90B in announced M&A transaction volume, as well as the former CEO of Fifth Street Finance. Todd began his career at Goldman, Sachs & Co, spending 24 years including as a Managing Director and Partner in the Investment Banking Division. 

Todd and I had a fascinating discussion about how funds are becoming firms and why there’s an investment opportunity around that transformation. We discussed:

• The evolution of alternative asset managers from Todd’s perspective as a banker to many alternative asset managers.
• Why GP stakes has become a solution for alternative asset managers.
• Why and how alternative asset managers are businesses and why it can make sense for them to take investment to grow.
• The benefits of GP stakes for investors and why the growing AUM of private markets means investors could benefit from exposure to GP ownership.
• The risks and challenges with GP stakes as an investment strategy.
• Why the middle market is an underserved and attractive segment in alternative asset management.
• What the currency of consolidation will look like in alternative asset management.
• What it means to grow and evolve a business as an alternative asset manager.

Thanks Todd for coming on the show to share your wisdom and experience on the evolution of asset management from your 30 years in the industry. 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

01:59 Introduction to Todd Owens and Cantilever Group

03:10 Todd Owens' Career Background

04:39 Early Days of Alternative Asset Management

08:28 Challenges and Opportunities in Alternative Asset Management

10:00 Cantilever's Focus on the Middle Market

11:35 Investment Opportunities in the Middle Market

13:50 Identifying and Investing in Promising Managers

16:24 Insights from Working with Founders

18:42 Sizing Up the Middle Market Opportunity

19:49 Sourcing and Structuring Investments

21:16 Offering Diverse Financial Solutions

23:15 Evaluating and Picking the Right Managers

25:54 Identifying Investment Opportunities

26:16 Winning Deals: Strategies and Insights

26:51 Providing Strategic Capital and Advisory

27:58 Focusing on Growth and Diversification

29:18 Underwriting and Growth Expectations

31:15 Exit Strategies and Market Dynamics

33:13 Diversification and Portfolio Construction

34:29 Revenue Streams and Valuation

35:54 Cantilever's Market Edge

37:33 Strategic Partnerships and Support

39:01 Founders' Perspective and Industry Insights

41:01 Cantilever's Unique Value Proposition

42:40 Leadership and Influences

43:34 Concerns and Challenges

46:05 Reflections and Future Outlook

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is a special show with Ben Harrison, the Co-Founder of DealCloud, which is now part of Intapp, where he is President, Industries.

Ben is a former banker and private equity professional at Falfurrias Capital Partners who went on to co-found DealCloud to make the process of managing deals and relationships for alternative asset managers and related industry service providers more streamlined and seamless.

Ben and team have done just that at Intapp DealCloud. They’ve built a unified deal and relationship management software business that is more than just a CRM. They’ve integrated a CRM function with business development, marketing, pipeline, deal management, fundraising, and investor relations features into a single platforms to enable firms in private markets to better run their day to day processes. They have a roster of over 2,500 customers, which includes many of the industry’s leading alternative asset managers.

Ben and I had a fascinating conversation about the evolution of enterprise software that serves private markets and why it’s such a large and growing opportunity, which was shared through the lens of an experienced and successful operator in this space who has grown his business to hundreds of millions in ARR that both alternative asset managers and founders and operators in private markets software will find interesting.

We discussed:

• Why scale matters in enterprise software just like it does in alternative asset management.
• The strategic question of building a comprehensive end-to-end software solution versus building a point solution.
• What are alternative asset managers looking for when building or buying software solutions for their business?
• How are alternative asset managers thinking about data and tech differently?
• Why and how the TAM for software solutions for private markets is growing in lockstep with AUM industry growth.
• How data helps investors make better decisions.
• Where AI can help automate processes for alternative asset managers.
• Is AI over- or under-hyped?

Thanks Ben for sharing your thoughts and wisdom of building an industry-leading software company for private markets and for Intapp and DealCloud’s partnership with Alt Goes Mainstream. We hope you enjoy.

Show Notes
00:00 Introduction and Background
03:54 Building Industry-Specific Software Solutions
08:02 Strategic Approach: Point Solutions vs. End-to-End Solutions
13:11 Evolution of Alternative Asset Management and its Impact on Software Solutions
16:24 Benefits of Technology for Large and Small Firms
19:11 Building Software for Large Managers vs. Small Managers
23:10 Technology's Impact on Firms' Efficiency and Productivity
25:49 The Role of Technology in Professional Development
28:24 Key Features and Benefits of DealCloud's Software Platform
32:00 The Future of Technology in the Alternative Asset Management Industry
35:49 Unlocking the Potential of Technology
38:46 The Shift Towards a User-Friendly and Automated User Experience
45:18 The Importance of Data-Driven Decision-Making
52:21 Growth Opportunities in the Private Markets Industry
01:04:16 The Role of AI in Enhancing Software Capabilities