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

Welcome back to the Alt Goes Mainstream podcast.

Alt Goes Mainstream was live from $1.2T AUM asset manager Nuveen’s nPowered conference, a two-day event bringing together Nuveen thought leaders and industry experts to explore challenges and opportunities in private markets.

We interviewed some of Nuveen’s senior leadership on site to hear their views and perspectives on private markets, working with the wealth channel, and product innovation.

We sat down with Keith Jones, the Global Head of Alternative Investments Product for Nuveen, and a member of the Extended Leadership Team. He’s responsible for the development and ongoing management of alternative investment products distributed through Nuveen’s institutional, wealth management, and retirement channels globally.

Keith and I had a fascinating conversation about product innovation in the wealth channel, how to educate and market products specifically designed for the wealth channel, and why it’s not a “one-size-fits-all” approach.

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

01:55 Welcome to Alt Goes Mainstream

01:58 Live from Nuveen's nPowered Conference

02:19 Conversation with Keith Jones

03:25 Keith Jones' Background

04:04 Nuveen and TIAA Collaboration

04:47 Keith's Role at Nuveen

05:01 Product Innovation in Wealth Channel

05:15 Structuring Products for Wealth Channel

05:37 Client-Centric Approach at Nuveen

06:59 Challenges in Structuring Products

07:39 Credibility and Brand Importance

09:36 Client Experience and Reporting

09:46 Brand and Credibility in Product Creation

10:40 Nuveen's Real Estate Focus

11:38 Feedback from Distribution Teams

12:33 Product Governance at Nuveen

13:19 Institutional vs. Wealth Channel

16:35 Evergreen Structures

18:08 Operational Considerations

18:51 FinTech Solutions in Structuring

31:48 Future of Product Innovation

32:20 Real Assets and Farmland

33:25 Fee Compression in Alternatives

36:13 Balancing Competing Forces

36:51 Importance of Diversification

38:34 Industry Collaboration for Change

39:12 Conclusion and Final Thoughts

39:58 Closing Remarks

Welcome back to the Alt Goes Mainstream podcast.

Alt Goes Mainstream was live from $1.2T AUM asset manager Nuveen’s nPowered conference, a two-day event bringing together Nuveen thought leaders and industry experts to explore challenges and opportunities in private markets.

We interviewed some of Nuveen’s senior leadership on site to hear their views and perspectives on private markets, working with the wealth channel, and product innovation.

We talked with Jeff Carlin, Senior Managing Director, Head of Global Wealth Advisory Services at Nuveen, and a member of the Senior Leadership Team. He’s responsible for leading the placement, distribution, and support of all products through the US Wealth distribution channel.

Jeff and I had a fascinating conversation about working with the wealth channel and how Nuveen has created products to serve this growing investor segment.

Thanks Jeff for coming on the Alt Goes Mainstream podcast to share your wisdom and expertise on private markets, private wealth, and distribution. 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 our Sponsor, Ultimus Fund Solutions

01:58 Live from Nuveen's nPowered Conference

02:26 Jeff Carlin's Role at Nuveen

02:33 Nuveen's Wealth Business

03:28 Jeff Carlin's Career Background

06:43 Evolution of Wealth Distribution

06:56 Changes in Advisor Discretion

09:52 Consultative Selling in Wealth Management

10:04 Hiring Distribution Professionals

12:10 Building Trust with Advisors

14:03 Indispensable Partnerships

16:41 Public vs. Private Markets

19:14 Global Wealth Management

19:44 Regional Differences in Distribution

20:59 Focus on Specific Channels

23:15 Structural and Non-Structural Advantages in Distribution

27:32 Public and Private Market Strategies

27:43 Portfolio Solutions Group

27:57 Allocating to Private Markets

28:19 Balancing Third-Party and Own Products

28:43 Advisor's Role in Portfolio Construction

29:28 Challenges in Wealth Channel Distribution

29:36 SMA Business vs. Private Markets

30:14 Intricacies of Private Market Investments

30:35 Client Understanding and Implementation

31:09 Drawdown Structures and Client Needs

31:16 Perpetual Vehicles in Private Credit

31:53 Simplifying Private Fund Investments

33:00 Managing Capital Calls and Cash Flows

34:45 Evergreen Structures in Private Markets

35:10 Future of Private Market Investments

36:20 Technology and Structural Innovations

36:52 Blockchain and Distributed Ledger Technology

37:40 Adoption of New Technologies

38:29 Excitement About Private Markets

39:18 Generational Differences in Investment

40:11 Education and Intergenerational Wealth Transfer

41:23 Gamification and Investment Psychology

47:08 Advisor Education and Private Markets

48:49 Changing Perceptions of Private Markets

52:41 Conclusion and Final Thoughts

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with a founder who is building mission-critical software for private equity firms.

I sat down in Citywire’s London studio with Venkat Subramaniam, the Co-Founder of DealsPlus, to discuss why he has built a digital solution to streamline, digitize, and automate the management of complex holding and capital structures for private equity firms.

Historically, private equity firms have relied on humans and manual processes to manage and track cap tables, transactions, and entities. This process has required significant human intervention and has often been rife with errors, making deals harder to consummate and transactions. Venkat has taken his 15 years of experience advising private equity managers on cross-border transactions, most recently as an Associate Partner at EY UK, to build DealsPlus to create a single source of truth for capital structures for private equity firms. DealsPlus works with a number of industry-leading private equity firms and is backed by a private equity firm with $38B in AUM.

Venkat and I had a fascinating conversation about the challenges private equity firms face with managing and tracking transactions and portfolio companies. We discussed:

• Why it’s been so hard to create a cap table management solution for private equity.
• Why it's much harder to build software for private equity firms than venture capital firms.
• How private markets can move from the Excel Age to the Digital Age.
• How to build software that provides a single source of truth.
• The atomic unit of value in private markets.
• Building an end-to-end platform versus building a point solution.
• What’s next in post-investment ops tech innovation?

Thanks Venkat for coming on the show to share your thoughts and wisdom on private markets tech.

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

01:59 Introducing Venkat Subramaniam and DealsPlus

03:57 Venkat's Career Journey

05:07 The Genesis of DealsPlus

05:09 Challenges in Transaction Management

06:25 The Lack of Uniformity in Private Equity Processes

06:54 The Impact of Technology on Private Equity

07:33 The Role of Cloud Computing

08:24 The Consumerization of Enterprise Software

09:04 Excel vs. Specialized Software

09:34 The Importance of Cap Table Management

10:04 Connecting Front Office and Back Office

10:30 Building Effective Software Solutions

13:24 Recurring Pain Points in Private Equity

14:47 The Complexity of Private Equity Cap Tables

15:44 Building a Platform for Private Equity

16:43 Stakeholder Management in Private Equity

18:50 Impact of Technology on Fund Operations

20:25 Integrating DealsPlus into Workflows

21:06 Best-in-Class Applications and Data Integration

23:33 The Impact of Fund Size on Complexity

25:42 Technology Adoption in Private Equity

27:09 Network Effects in Private Equity Technology

37:41 The Future of Private Markets Technology

39:14 Conclusion and Closing Remarks

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with a founder who is building mission-critical valuation and portfolio monitoring software for alternative asset managers.

We are joined by Yann Magnan, the Co-Founder and CEO of 73 Strings, to discuss how valuation work and portfolio monitoring is moving from manual to automated and why that’s so important for the industry. 73 Strings has leveraged AI and automation to more seamlessly and cost-effectively extract data, monitor portfolios, and streamline middle-office processes for valuations. 73 Strings works with a number of the industry’s top alternative asset managers and has received investment from Blackstone, Fidelity International Strategic Ventures, and Broadhaven Ventures, amongst others.

Yann has brought his experience as a senior member of the Duff & Phelps team, where he was EMEA Market Leader and member of the Global Operating Committee and as a Partner at EY’s Transaction Advisory Services to help bring valuation and portfolio monitoring solutions into the mainstream.

Yann and I had a fascinating conversation about how technology innovation is impacting private markets. We discussed:

• The challenges with manual valuation services businesses.
• How to create uniformity and standardization with private markets fund performance data.
• How AI is changing private markets post-investment reporting processes.
• Does automation in private markets help big funds or small funds more?
• The evolution of post-investment private markets market structure.
• The biggest technology innovation still missing from private markets.
• Why the growth of the wealth channel and evergreen funds increases the need for more streamlined reporting and valuation solutions.

Thanks Yann for coming on the show to share your views and wisdom on 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 Sponsor Message

01:56 Welcome to Alt Goes Mainstream

02:05 Introducing Yann Magnan and 73 Strings

03:56 Yann's Background in Valuation Services

04:33 The Inefficiencies of Manual Valuation

05:20 The Genesis of 73 Strings

06:11 The Importance of Experience in Private Markets

06:24 Automating Valuation Processes

08:32 Challenges in Standardizing Valuation

09:13 The Role of Human Judgment in Valuation

10:24 AI's Potential in Valuation

11:10 Accountability in Automated Valuation

12:47 73 Strings' Data Handling and Partnerships

14:07 Standardizing Data Across Portfolios

15:44 Impact of Automation on Human Processes

17:02 Growth of the Wealth Channel and Evergreen Funds

17:59 Accelerating Need for Better Valuation Software

19:37 Challenges of High-Frequency Reporting

19:59 Technological Implications of Daily Valuation

20:31 Private Assets and Technology Infrastructure

20:44 Industry Resilience and Smart People

20:59 Forefront Firms and Blackstone Partnership

21:48 Valuation Process and Data Control

23:11 Extensibility to Other Asset Classes

24:12 73 Strings' Versatile Platform

25:13 Howard Marks on Asset Allocation

25:52 Atomic Unit of Value in Valuations

27:31 Data Sharing Across Business Units

30:24 Automation Benefits for Large and Small Firms

31:33 Building Technology for Large Firms

34:16 Trust and Experience in Client Relationships

35:09 Strategic Investors and Their Value

37:37 Industry Participation and Standardization

39:13 Maturity and Cost of Technology

40:22 Future of Data in Private Markets

41:39 Convergence of Private and Public Markets

42:11 Volatility and Transparency in Private Markets

43:14 Attracting Retail Investors

44:41 Conclusion and Final Thought

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

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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