Welcome to the 14th episode of the Monthly Alts Pulse, a collaboration between iCapital x Alt Goes Mainstream. 

Here’s the latest episode of the Monthly Alts Pulse, a live conversation in studio with Lawrence Calcano, the Chairman & CEO of iCapital. As the leader of a platform with over $200B of assets that is responsible for the majority of individual and advisor-led investment flows into the alts space, Lawrence and iCapital have their finger on the pulse of what’s happening in private markets.

On this episode, Lawrence and I had a fascinating and lively discussion. We covered:

• Has private markets moved from access as table stakes to customization and differentiation?
• What are the different phases of private markets — and how has iCapital built solutions for each?
• Is data the oil for private markets?
• How will model portfolios fit into the wealth channel’s adoption of private markets?
• If advisors now have access to private markets, how do they differentiate?
• How does the trend of OCIOs being acquired by wealth managers factor into the continued evolution of wealth channel adoption of private markets?
• The nuances of diligence on fund managers.
• Why do private markets “start and stop at the advisor’s desktop?”
• What's the interplay between brand, access, and customization?

Thanks Lawrence for a great episode … looking forward to next month’s conversation!

Show Notes
00:00 Introduction

00:23 Trends in Wealth Management: Customization and Differentiation

00:46 The Evolution of Private Markets Access

01:28 Building Bespoke Programs for Advisors

01:50 The Importance of Better Fit for Clients

02:26 Infrastructure and Customization in Wealth Channels

02:39 Phases of Evolution in Wealth Management

03:29 Expanding Product Access and Automation

03:49 Creating an Operating System for Wealth Management

04:30 The Role of Model Portfolios

04:56 The Role of Technology and Tools in Customization

05:21 Differentiation Through Custom Solutions

06:17 Understanding Customization in Wealth Markets

07:11 The Role of Diligence in Wealth Management

09:40 Reconciling Efficiency and Thoughtful Allocation

09:59 Advisors' Role in Customization and Differentiation

10:08 The Advisor's Role in Client Education

11:01 The Future of Secondary Markets and Evergreen Products

12:07 Tools for Advisors: Information and Fit

14:57 The Importance of Education and Technology

16:17 Product Innovation and Customization

19:23 Conclusion: Balancing Tensions in Wealth Management

Everyone is talking about evergreens.

Alt Goes Mainstream has collaborated with iCapital and Co-Founder & Managing Partner, Head of Portfolio Management Nick Veronis to dive into the evergreen question with some of the leading practitioners in private markets.

This three part series with industry experts from Vista Equity Partners, KKR, and Hamilton Lane shines a light on one of the fastest-growing areas in private markets and its impact on the wealth channel.

The three part series features:

• Vista Equity Partners Managing Director, Global Head of Private Wealth Solutions Dan Parant.
• KKR Managing Director, Head of Americas, Global Wealth Solutions (GWS) Doug Krupa.
• Hamilton Lane Managing Director, Co-Head US Private Wealth Solutions Stephanie Davis.

Please enjoy the third episode of the series as Nick and I talk with Hamilton Lane's Stephanie Davis.

Show Notes
00:00 Introduction: Setting the Stage

00:17 Early Days in the Evergreen Space

00:33 Stephanie's Journey into Private Wealth

00:40 From Merrill Lynch to Hamilton Lane

01:15 The Evolution of Alternative Investments

02:09 Success in Early Evergreen Structures

02:23 Challenges and Innovations in Distribution

03:01 Nick's Perspective on the Evergreen Space

03:20 Hamilton Lane's Thought Leadership

03:50 The Importance of Private Companies

04:29 The Evolution of Evergreen Funds

05:11 Optimal Structures for Evergreen Funds

05:35 Target Audience and Distribution Strategies

06:25 Commitment to Evergreen Structures

06:50 Multi-Manager Approach and Diversification

07:18 Adoption of Private Capital by Advisors

07:49 The Role of Private Equity in Evergreen Funds

08:50 The Importance of Fee Efficiency

09:45 Educating Investors on Evergreen Structures

15:00 The Power of Compounding in Evergreen Funds

16:02 Institutional Interest in Evergreen Funds

21:54 The Role of Liquidity in Evergreen Investments

22:28 Educating Advisors and Clients

25:48 Challenges in Advisor Education

28:14 Allocation Strategies for Evergreen Funds

31:22 The Future of Evergreen Structures

31:36 3.0 in the Evergreen Space

34:07 Manager Selection in Private Markets

35:18 The Evolving Relationship of Public and Private Markets

36:03 Closing Thoughts and Key Takeaways

36:33 Disclaimer and Informational Purposes

Everyone is talking about evergreens.

Alt Goes Mainstream has collaborated with iCapital and Co-Founder & Managing Partner, Head of Portfolio Management Nick Veronis to dive into the evergreen question with some of the leading practitioners in private markets.

This three part series with industry experts from Vista Equity Partners, KKR, and Hamilton Lane shines a light on one of the fastest-growing areas in private markets and its impact on the wealth channel.

The three part series features:

• Vista Equity Partners Managing Director, Global Head of Private Wealth Solutions Dan Parant.
• KKR Managing Director, Head of Americas, Global Wealth Solutions (GWS) Doug Krupa.
• Hamilton Lane Managing Director, Co-Head US Private Wealth Solutions Stephanie Davis.

Please enjoy the second episode of the series as Nick and I talk with KKR's Doug Krupa.

Show Notes
00:23 Doug's Background in Private Markets

01:18 Early Career as a Financial Advisor

01:55 Understanding Overfunded Pensions

02:47 Focus on Making Private Markets Accessible

03:12 Building Innovative Solutions at KKR

03:25 Evolution of Wealth and Asset Management

03:55 Challenges in Private Markets

05:05 Partnering with KKR

05:55 KKR's Commitment to the Wealth Channel

06:04 Innovations in Fund Structures

06:59 The Conglomerate Model

07:15 KKR's Approach to Wealth Channel

07:46 Expanding Access to Private Markets

08:34 Delivering the Same Investment Experience

09:36 Maslow's Hierarchy of Needs for Wealth Channel

09:59 Legislation and Access to Private Markets

12:56 Evergreen Structures vs. Conglomerate Model

17:37 Investor Behavior in Evergreen Structures

18:12 Adoption of Evergreen Strategies

21:24 Educating the Industry on Evergreen

22:55 The Shift from Public to Private Markets

24:00 KKR's Educational Initiatives

26:06 Rebranding Alternatives as Private Markets

28:53 Partnerships and Hybrid Solutions

29:04 Market Structure Evolutions

31:11 Future of Private Markets

32:32 Dominant Players in Private Markets

34:18 Rapid Adoption of Evergreen Strategies

34:59 Disruption in the Industry

35:18 Final Thoughts on Private Markets

38:58 Closing Remarks

39:06 Disclaimer and Legal Information

40:55 Copyright Information

Everyone is talking about evergreens.

Alt Goes Mainstream has collaborated with iCapital and Co-Founder & Managing Partner, Head of Portfolio Management Nick Veronis to dive into the evergreen question with some of the leading practitioners in private markets.

This three part series with industry experts from Vista Equity Partners, KKR, and Hamilton Lane shines a light on one of the fastest-growing areas in private markets and its impact on the wealth channel.

The three part series features:

• Vista Equity Partners Managing Director, Global Head of Private Wealth Solutions Dan Parant.
• KKR Managing Director, Head of Americas, Global Wealth Solutions (GWS) Doug Krupa.
• Hamilton Lane Managing Director, Co-Head US Private Wealth Solutions Stephanie Davis.

Please enjoy the first episode of the series as Nick and I talk with Vista Equity Partners’ Dan Parant.

Show Notes
00:19 Welcome and Guest Introduction

00:39 Vista's Founding and Early Days

02:05 Vista's Growth and Achievements

03:11 Dan's Background and Role at Vista

04:07 Enterprise Software Investment Thesis

05:11 The Resilience of Enterprise Software

07:11 The Private Market Advantage

07:25 Constructing Portfolios for Wealth Channels

08:13 The Shift from Public to Private Markets

09:52 Evergreen Funds and Their Benefits

11:06 Evergreen Strategies in Software Investing

12:01 Advantages of Evergreen Structures

13:09 The Role of Private Equity in Evergreen Funds

13:17 Private Companies Staying Private Longer 

19:25 Vista's Approach to Different Company Sizes

20:28 Growth vs. Yield in Evergreen Strategies

21:11 The Importance of Scale in Evergreen Funds

24:24 Challenges of Managing Evergreen Structures

26:12 The Discipline of Manager Selection

28:41 Educating Investors on Evergreen Structures

30:08 Omnichannel Education Strategies

31:04 Product-Specific Education

32:00 Understanding Liquidity in Evergreen Funds

33:37 Structuring Liquidity Parameters

36:17 The Future of Evergreen Strategies

39:45 Closing Remarks and Final Thoughts
40:17 Legal & Compliance Information

Welcome back to Going Public with Evercore’s Glenn Schorr.

On the latest episode of Going Public, we drop the beat on F.R.E.A.M. 

Paying homage to Wu-Tang Clan’s song “C.R.E.A.M.” (“Cash rules everything around me”), Glenn discusses why “Fees rule everything around me” in asset management. 

We cover some of last quarter's most pressing topics in alternative asset management, including:

• How alternative asset managers balance fee generation with returns.
• Does major growth still lie ahead for alternative asset managers?
• Why “fees rule everything around me,” but so does alpha generation.
• Why does distribution (almost always) win in asset management?
• What’s the most valuable aspect of a publicly traded alts manager having a public currency?
• What is Glenn keeping his eye on for next quarter?

Making private markets more public — with expert analysis

Alt Goes Mainstream has partnered with an expert who has seen the evolution of alternative asset managers from their early days.

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

00:00 Introduction

00:38 Meet Glenn Schorr

01:52 Wu-Tang Clan and Asset Management

02:40 F.R.E.A.M.: Fees Rule Everything Around Me

02:49 Public Investors and Revenue Streams

03:47 Balancing Fee Growth and Investment Returns

05:50 Talent Migration and Fee Justification

06:38 Migration to Private Markets

07:07 Deregulation and Its Impact

09:31 Structural Challenges for Banks

09:58 Growth in Alternative Asset Management

12:19 Wealth Channel and Private Markets

13:13 Private Equity Performance

15:37 Education Process for Investors

16:27 Perpetual Private Equity Products

17:35 Model Portfolios: The Next Frontier

21:00 Distribution and Asset Management

24:24 Corporate Strategy and Partnerships in Asset Management

27:10 Public vs. Private Firms

29:56 Acquisitions and Growth Strategies

31:09 Specialty Managers and Market Trends

33:12 Big TAMs and Investment Opportunities

36:15 Consolidation in the Industry

38:16 Surprises and Trends in the Quarter

39:44 Deployment and Investment Grade Private Credit

40:03 Credit Cycles and Market Concerns

41:15 Data Centers and AI Investments

41:54 Size and Scale in Asset Management

45:19 Bank and Asset Manager Partnerships

46:15 Looking Ahead: Thoughts on the Next Quarter

47:10 Conclusion and Final Thoughts

Company Coverage and Disclosures

Evercore ISI

Glenn Schorr

| 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.
| BlackRock, Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to BlackRock, Inc. in the last 12 months.
| Evercore ISI or an affiliate expects to receive or intends to seek compensation for investment banking services from BlackRock, Inc. within the next three months.
| 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 research analyst's household) is an officer, director or 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 research analyst's household) is an officer, director or 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 | JPMorgan Chase & Co.
| Glenn Schorr holds a long position in equity securities of JPMorgan Chase & Co.
| KKR | KKR & Co. Inc.
| KKR & Co. Inc. is a client of Evercore LLC, and Evercore LLC has provided investment banking services to KKR & Co. Inc. in the last 12 months.
| Evercore ISI or an affiliate has received comp...

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