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

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with Alex Chaloff, the CIO of a large and sophisticated private wealth management firm that is very active in private markets.

Alex is Chief Investment Officer of Bernstein’s $125B+ private wealth management unit within $725B AUM AllianceBernstein. He was previously the Head of Alternative Asset Strategies. Prior to joining Bernstein in 2005, he was a MD for Wilshire Associates, serving on the firm’s investment committee. Prior to that, he worked in fund accounting operations at a global custodian in Boston.

Alex and I had a fascinating conversation about: 

• How to approach private markets asset allocation.
• Why he’s doing the job that he always wanted to do.
• How to think about portfolio construction.
• The importance of patience.
• The questions about liquidity.
• Why structure matters.

Thanks Alex for coming on the show to share your wisdom and views.

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 Theme Song

01:35 Welcome to the Podcast

01:59 Introducing Alex Chaloff

03:01 Alex Chaloff's Career Jurney

03:49 Transition to Bernstein

04:16 Current Role and Responsibilities

05:26 Investment Strategy and Market Insights

06:58 Active vs Passive Investment

11:35 Middle Market Focus

14:26 Evaluating Fund Managers

18:28 Lessons Learned in Fund Management

20:51 Allocating to Private Markets

22:38 Liquidity and Risk Management

27:01 Current Market Opportunities

31:01 The Perception of Infrequent Reporting

31:38 Private Wealth and Market Fluctuations

32:21 Understanding Liquidity Concerns

32:54 The Future of Private Market Investments

33:38 Challenges in Public Market Benchmarks

34:45 GP and LP Dynamics in Private Markets

36:58 Product Innovation in Private Markets

38:30 Evergreen Structures and Asset Allocation

39:20 Vintage Diversification Strategy

42:07 Lessons from the Current Market Cycle

42:30 Next Generation Investors and Impact Investing

46:13 Double Bottom Line Investing

48:24 Concerns in Private Debt Markets

51:33 Opportunities in Venture Capital

54:36 Favorite Alternative Investments and Future Trends

I went into The Compound and came out alive.

Recently, I joined Michael Batnick and Ben Carlson of Ritholtz Wealth Management on their Animal Spirits podcast by The Compound. It is a fantastic show that produces frank and thoughtful conversations on markets and the wealth management world. They invited me on their show to discuss why alts are going mainstream.

We had a great conversation on the animal spirits of alts and we unpacked the opportunities and challenges ahead for private markets, wealth managers, and the alternative asset managers looking to work with the wealth channel.

We covered:

• Why I don’t like the term “downstreaming of alts.”
• The size and scale of the opportunity with the wealth channel.
• Why and how it can make sense for the wealth channel to allocate to alts.
• The changing nature of asset allocation from slices of a pie to buckets and spectrums.
• The concept of liquidity.
• The attractiveness of evergreen funds for both GPs and LPs.
• Are private markets in a bubble?
• Why GP stakes are a compelling investment opportunity given structural trends in private markets.
• Can private markets be indexed (and should they be)?

Thanks Michael and Ben for having me on the show. Really enjoyed the conversation and it was a pleasure to join you.

Michael and Ben are fantastic and thoughtful asset allocators and commentators in investing and wealth management. If you don’t already listen to their podcast or read their commentary on markets, you can check out their blogs below:

Michael Batnick’s The Irrelevant Investor.

Ben Carlson’s A Wealth of Common Sense.

Welcome back to the Alt Goes Mainstream podcast.

On today’s episode, we are joined by Mercer Investments’ US Financial Intermediaries Leader Gregg Sommer and CAIS’ MD and Head of Investments Neil Blundell.

Gregg and Neil bring deep experience and backgrounds in private markets to discuss how alternatives can be further adopted by the wealth channel.

Gregg is Mercer’s US Financial Intermediaries Leader, serving US wealth management and family office clients. He is a member of Mercer’s Wealth Leadership Team, Wealth Management Strategic Research and Investment Committees, and the Investment Policy Committee. He joined Mercer’s Investments business in 2009 and is based in Denver. Gregg began his career at U.S. Trust and over the last 35 years has held several executive positions in the investment industry. He has a comprehensive investment, business, and risk management background and has managed many successful investment teams focused on risk assessment, asset allocation, due diligence, portfolio management, organizational evaluation, and financial analysis across both private and public investment strategies. Gregg served as Chief Financial and Operating Officer of a firm that managed real estate and private equity and debt portfolios and has been a Principal and Portfolio Risk Officer for RCM, a Commodity Trading Advisor. Additionally, he was a founding Partner at Global Trading Partners, a trading firm focused on global market relationships.

Neil brings over 20 years of experience in private markets to CAIS. He recently worked at Invesco as the Global Head of Client Solutions and Alternatives for the Investment Solutions team. He was responsible for developing and managing over $90B in customized multi-asset investment strategies spanning both traditional and alternative solutions and was a member of the team’s executive committee, investment committee, and chair of the alternative investment committee. Prior to Invesco, Neil was at BlackRock for 10+ years, where he was most recently Managing Director and Alternatives Platform Head within the Institutional Client Business.

Gregg, Neil, and I had a fascinating discussion about how the wealth channel can approach alternatives and how they can think about both diligence and customization. We covered:

• The case for alternatives.
• How advisors currently approach alternatives and how they can think about it differently going forward.
• How to think about portfolio construction that includes alternatives.
• How alts can help advisors differentiate their practice and attract clients.
• Following the fast river in a career and why alternatives are “the fast river.”
• The meaning of “structure over strategy.”
• The rise in popularity of evergreen funds.

Thanks Gregg and Neil for coming on the show to share your views and experience in 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 Sponsor, Ultimus Fund Solutions

01:17 Podcast Opening and Guest Introduction

01:58 Guest Backgrounds and Career Highlights

03:43 Discussion on Wealth Channel and Alternatives

03:51 The Case for Alternatives

07:47 The Evolution of Private Debt

08:23 The Moment It Clicked for Alts

12:08 Institutional vs. Wealth Channel Approaches

13:54 Educating the Wealth Channel

15:47 Evergreen Funds and Wealth Channel

19:29 Generational Wealth Transfer

20:04 Current Market Trends and Private Markets

25:29 Importance of Due Diligence in Alternatives

26:33 Advisor Allocation Trends

26:53 Expected Allocations in the Next Year

27:07 Private Equity and Credit Insights

27:17 Real Estate and Hedge Funds Outlook

27:27 Emerging Infrastructure Strategies

27:47 CAIS Platform Overview

28:17 Transactional Volume Trends

28:36 Registered Funds Growth

29:30 Institutional vs. Wealth Channel Behavior

30:25 Customization in Private Markets

31:22 Technology's Role in Wealth Management

35:52 The Importance of Brand in Investments

39:26 Strategic Partnerships in Wealth Management

39:56 Concerns About Private Markets Growth

43:36 Evaluating Manager's Edge

45:54 Future of Alternative Investments

Disclosure

This content is for institutional investors and for information purposes only. It does not contain investment, financial, legal, tax or any other advice and should not be relied upon for this purpose. The materials are not tailored to your particular personal and/or financial situation. If you require advice based on your specific circumstances, you should contact a professional adviser. Opinions expressed are those of the speakers as of the date of the recording, are subject to change without notice and do not necessarily reflect Mercer’s opinions.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features a guest who has consistently and astutely figured out the growth areas in private markets.

We are joined by Manulife’s new Global Head of Private Markets Anne Valentine Andrews. She’s responsible for the strategy, business development, and growth of Manulife Investment Management’s private markets business. Manulife has a platform that spans real estate, infrastructure, timber, agriculture, private equity, and credit.

Anne has a comprehensive and informed purview of both private markets trends and of the different asset classes. She brings together the CIOs from each asset class in the Manulife business and works with the global product group to drive private markets product innovation across the institutional, retail, and retirement channels.

Anne has a wealth of experience in private markets and in infrastructure in particular. She joined Manulife from BlackRock, where she was most recently Global Head of Infrastructure and Real Estate. Previously, she was Co-Head and Chief Operating Officer for the Morgan Stanley infrastructure platform and was a Director at Macquarie Bank.

Anne and I had a fascinating conversation about the evolution of private markets and how to build out a private markets investment platform and its brand. We discussed:

• How to approach building a private markets investment platform at an industry behemoth.
• Why culture matters at an investment firm.
• The continued consolidation of alternative asset managers.
• What it means to connect real assets with real money.
• How to build a brand and educate investors.
• How to bring private markets investment opportunities into retirement accounts.
• The opportunity in infrastructure investing.

Thanks Anne for coming on the show to share your experience 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 from Ultimus Fund Solutions

01:18 Podcast Opening and Guest Introduction

03:39 Anne Valentine Andrews' Career Journey

04:42 Evolution of the Infrastructure Investments

05:41 Infrastructure’s Resilience and Growth

06:27 Building a Private Markets Platform

14:28 Challenges and Strategies in Making Acquisitions

17:12 Evaluating Culture and Integration in Asset Management

18:47 Building a Comprehensive Platform

20:20 Educating Investors and Expanding Access

23:29 Future of Alternatives in Retirement Accounts

26:43 Platformization of Alternatives

28:01 Building and Marketing a Trustworthy Brand in Financial Services

29:30 Learning from Other Industries: Amazon's Influence

31:15 The Evolution of Asset Management

31:57 Adapting to Market Changes and Mega Trends

33:34 The Importance of Long-Term Investment Strategies

34:33 Decarbonization and Natural Capital

35:32 The Importance of Long-Term Thinking

40:02 Connecting Real Assets to Real Money

45:42 Risks and Opportunities in Infrastructure Investment

48:03 The Role of Scale in Private Markets in Infrastructure

49:21 Future of Alternative Investments

The views and opinions expressed in this podcast are those of the speakers, are subject to change as market and other conditions warrant, and do not constitute investment advice or a recommendation regarding any specific product or security. There is no guarantee that the investment strategy discussed will be successful or achieve any particular level of results. Any economic or market performance information is historical and is not indicative of future results, and no forecasts are guaranteed. Investing involves risks, including the potential loss of principal.

Financial markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person.

All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment or legal advice. Clients and prospects should seek professional advice for their particular situation. Neither Manulife Investment Management, nor any of its affiliates or representatives (collectively “Manulife Investment Management”) is providing tax, investment or legal advice. 

Manulife Investment Management paper titled U.S. farmland investment returns: continued gains in 2022; 5/19/23. NCREIF collects U.S. farmland property-level performance realized by institutional investments and reports the aggregated results within its Farmland Property Index (FPI). Manulife Investment Management is a participating member in the FPI. The index requires participating managers to report all eligible properties. Usage of this data is not an offer to buy or sell properties.

Manulife, Manulife Investment Management, Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

Man...

Welcome to the 11th episode of a collaboration between iCapital x Alt Goes Mainstream. 

We changed up this month’s episode, welcoming iCapital Co-Founder and Managing Partner, Head of Investment Solutions Dan Vene to the show to discuss the evolution of private markets and the launch of iCapital’s Marketplace.

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.

Dan and I had a fascinating and lively discussion about the evolution of the industry through the lens of iCapital’s growth and maturation, which has most recently included the creation of iCapital Marketplace. We discussed:

• Can alternative investments help you sleep at night?
• Public markets vs. private markets?
• What are the benefits of private markets?
• Are there evolving perspectives on liquidity?
• What potential market catalysts could further shift investments from public to private investments?
• How and why have fund managers had success on Marketplace?
• What’s the new world order for investing?

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

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is one of evergreen importance. We talk with one of the pioneers in the evergreen fund space.

Rob Collins, a Partner, Co-Head of Private Wealth, and Head of the New York office and a member of the Global Executive Board at Partners Group, a $147B+ AUM alternative asset manager, joins the podcast to discuss how Partners Group started the evergreen fund space in the early 2000s.

Rob has deeply evolved perspectives on both evergreen funds and working with the wealth channel. He leads Partners Group’s US private wealth and defined contribution practice and is President, Portfolio Manager, and Member of the Board of Managers of Partners Group Private Equity (Master Fund), LLC. He also chairs Partners Group USA’s Investment Committee. He joined the firm in 2005, only 4 years after Partners Group was the first firm to launch an evergreen private equity structure.

Rob and I had a fascinating conversation about what evergreen funds are, the mechanics of how they work, and why they can make sense for investors – both individual and institutions. We discussed:

• What Partners Group saw in the early 2000s that made them decide to create the evergreen private equity fund structure.
• Why it’s taken the industry time to adopt evergreen funds.
• How to think about returns with evergreen funds.
• Why institutions — in addition to wealth advisors — have used evergreen funds.
• Why the time, money, and liability questions of private equity fund investments make evergreens a fit for many advisors.
• The importance of compounding and how it relates to evergreen funds.
• The challenges and nuances with managing evergreen funds.
• Why “life is too short for capital calls.”
• How does private equity go from being sold to being bought?
• What can the industry  do to continue to remove pain points for the wealth channel?

Thanks Rob for coming on the show to share your thoughts and wisdom on private markets and the importance of one of the biggest trends in private markets, evergreen funds. We hope you enjoy.

Show Notes
00:00 Introduction to Ultimus Fund Solutions

01:18 Podcast Opening and Theme Song

01:52 Welcome to Alt Goes Mainstream

01:59 Introducing Rob Collins and Evergreen Funds

02:24 Rob Collins' Background and Role at Partners Group

04:18 Growth and Innovation at Partners Group

05:46 Evergreen Solutions for Clients

07:02 The Importance of Flexibility in Evergreen Funds

09:56 Evergreen Funds vs. Traditional Structures

11:38 The Rise of Evergreen Funds

29:48 Challenges and Risks of Evergreen Structures

30:01 Balancing Growth and Performance in Evergreen Funds

34:57 Challenges for General Partners

35:40 Expanding with New Products

36:23 Trends in Private Markets

36:56 Evergreen Funds and Private Companies

37:27 Life is Too Short for Capital Calls

38:52 Shift from Public to Private Markets

40:24 Liquidity in Evergreen Funds

41:50 Building a Resilient Diversified Portfolio

43:05 Managing Investor Expectations

44:26 Control in Portfolio Construction

46:48 Positioning Evergreen Funds

52:13 Evergreen vs. Closed-End Funds

54:43 Innovating Asset Allocation Frameworks

57:12 Educating Distribution Professionals

01:00:26 Consultative Sales Approach for Evergreen Sales Professionals

01:02:03 Future Growth in Private Markets

01:03:47 Rob’s Favorite Alternative Investment

01:04:42 Conclusion and Final Thoughts

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.

Welcome back to the Alt Goes Mainstream podcast.

I've been having many conversations with GPs and LPs over the past few months — and it feels like we've reached a point in private markets where both sides are trying to figure out how to navigate this space, from a product perspective and a technology perspective. 

To better understand these issues, I asked Lawrence Calcano, Chairman & CEO of iCapital, the largest platform in the space and a business that is in the middle of much of the flows of activity between GPs and LPs, to come back on the show to dive deeper into these topics.

The main topic of conversation? The evolution of the different service models that enable GPs to unlock access to private markets for more LPs.

As private markets welcomes more investors to the space, the how becomes as important as the why. 

How can investors gain access to private markets in ways that work for them?

How can alternative asset managers better serve those investors? 

How can this all be done in a responsible, thoughtful way that sets up both investors and private markets for success in the long-term?

Lawrence and I had a fascinating conversation. We discussed:

• How can operational efficiency across the entire value chain lower fees?
• Where do technological innovations like distributed ledger and AI factor into industry transformation?
• How important is education in driving adoption of alternative investments?
• How model portfolios and customization can transform the investor experience.
• Platform versus point solutions.
• Overestimating and underestimating market trends and market size.
• Why effortless is a myth.

Thanks Lawrence for coming on the Alt Goes Mainstream podcast to share your thoughtful perspectives on the industry and its continued evolution.

Show Notes

00:00 Introduction to Ultimus Fund Solutions

01:18 Welcome to Alt Goes Mainstream and Introduction to Lawrence Calcano

02:26 Navigating Private Markets

03:36 Holistic Solutions for GPs and LPs

03:57 Importance of Education in Alts

04:46 Understanding Alts in Portfolios

06:50 Lowering Fees Across the Chain

07:32 Technology and Tools for Advisors

08:36 Success in the Wealth Channel

10:21 Investment Product Innovations

11:44 Direct Relationships in Private Markets

13:26 Operationalizing Cost Structure Changes

14:21 The Role of AI and Data

14:43 Fee Evolution in Private Markets

15:31 Operationalizing New Workflows

16:06 Long-Term Industry Investments

18:37 Collaboration in the Industry and Education

20:34 Model Portfolios and Customization

23:04 Addressing Liquidity Concerns

24:18 Democratization of Private Markets

25:14 Platform vs. Point Solutions

31:14 The Importance of Scale

38:53 Moving Fast and Moving Slow 

40:33 Conclusion and Final Thoughts

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.

Welcome back to the Alt Goes Mainstream podcast.

His career started when someone said to him, “well, have you thought about venture capital? We don’t think that you’d be any good at it.”

The rest is history.

Today’s episode features one of the legends of the venture capital industry.

Peter Barris joined New Enterprise Associates in 1992 after a storied operating career as President and COO at Legent Corporation and an executive at GE Information Services. He served as Managing General Partner and Chairman of NEA from 1999 to March 2024. Under Peter’s leadership, NEA saw tremendous success, growing into one of the world’s largest venture capital firms and raising the largest-ever venture capital fund a number of times. Today, NEA’s AUM stands over $25B.

Peter was responsible for investing in a number of foundational and industry-transforming technology companies, including Salesforce.com, UUNET, Groupon, WebMD, Workday, CareerBuilder, Tempus, and more.

It was an honor to talk with Peter, who has such rich perspectives as both an operator and investor.

We had a fascinating discussion about the early days of venture capital and how the industry has evolved. We covered:

• The inside story of how almost every other Partner said no but Peter's investment turned out to be a 75x return.
• What's the “best characteristic and the death characteristic” of an entrepreneur?
• In today's hypercompetitive market, do VCs have enough time to make good decisions?
• Why the world of venture capital is about influence.
• What does it mean to earn an entrepreneur’s trust as a VC?
• Why VCs with operating backgrounds can bring unique value to startups.
• How NEA came up with the term "Venture Growth Equity."
• How can a VC tell that a founder is good at experimentation and that they have the good judgment?
• Why specialization and domain expertise are prerequisites in today’s venture industry.
• The importance of relying on instinct to make great investments.
• Why the business plan that is bet on is not always the business plan that ultimately succeeds.

Thanks Peter for coming on the show. It was an honor and a pleasure to hear your views on the evolution of an industry and for you to share your wisdom and experiences.

Show Notes

00:00 Introduction and Sponsor Message from Ultimus

01:55 Guest Introduction: Peter Barris

01:59 Peter Barris' Career Beginnings as an Operator

03:43 How Peter decided to join NEA

04:31 Early Days at NEA

12:30 First Investment Experience – The world of venture capital is about influence

15:07 How to Influence a Company when You Don’t Control the Company

21:48 Scaling Businesses: When Scale Can be a Moat - The Groupon Example

26:41 The Art of Experimentation

29:16 The Most Important Characteristic of Successful Entrepreneurs and the Death Characteristic

30:40 The Groupon Investment: A Case Study

33:08 The Evolution of Venture Capital Decision Making

33:58 Specialization and Competition in Modern Venture Capital

38:10 How NEA Came Up with the Term: Venture Growth Equity

46:04 The Impact of Scale in Venture Capital

50:49 The Future of Venture Capital and Industry Evolution

59:16 Lessons Learned in Venture Capital

01:02:08 Conclusion and Final Thoughts

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.

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features the architects behind one of the industry’s faster growing wealth management platforms, NewEdge.

We welcome NewEdge CEO, Managing Partner, and Co-Founder Rob Sechan and NewEdge CIO Cameron Dawson.

Both Rob and Cameron have a wealth of experience in both wealth management and private markets. Rob has over two decades of experience in financial services, beginning his career as a financial advisor at Morgan Stanley, before running a family office business as a Managing Director at Lehman Brothers. He later joined UBS as a Managing Director and Head of the Intellectual Capital Subcommittee, where he helped guide the firm’s tactical investment process for wealthy families and institutional clients before founding NewEdge in 2020. Cameron was the Chief Market Strategist at Fieldpoint Private Securities and a Senior Equity Analyst at Bank of America before joining NewEdge as CIO.

Since its founding in 2020, NewEdge has grown to over $44B AUM, supports over 300 financial advisors. NewEdge has built a platform that combines wealth management, technology, custody, research, and alternatives capabilities. They’ve built out a sophisticated private markets investment practice, which we unpacked in detail on today’s podcast.

Rob, Cameron, and I had a fascinating discussion. We covered:

• The transformation in wealth management and the approach that NewEdge has taken in the independent wealth channel.
• The evolution of Super RIAs.
• The role of alternatives in wealth management. 
• Navigating client psyche and market cycles.
• The importance of due diligence and why fee discipline matters in private markets.
• The importance of liquidity in a client's portfolio.
• Why portfolio construction is key in the wealth channel.

Thanks Rob and Cameron for coming on the show to share your thoughtful views on wealth management and private markets.

Show Notes

00:00 Introduction and Ultimus Sponsor Message

01:21 Welcome to the Podcast

02:03 Introducing NewEdge Wealth and the Guests

02:20 Rob Sechan's Journey in Wealth Management

07:46 Cameron Dawson's Perspective on NewEdge

11:45 The Role of Alternatives in Wealth Management

20:09 The Evolution of Super RIAs

24:10 Investment Strategies and Client Focus

31:31 Balancing Proactivity and Client Sensitivity

31:56 The Importance of Transparency and Differentiation

32:30 Navigating Client Psyche and Market Cycles

33:33 The Role of Alternatives in Portfolios

36:05 Private Equity Opportunities and Challenges

38:00 Fee Discipline and Alpha Generation

51:57 Engaging with Wealth Channels

56:52 Favorite Alternative Investments

59:27 Conclusion and Final Thoughts

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.

AGM collaborated with Pangea Group, a firm that helps B2B fintech companies with go-to-market strategies, at a live event they hosted on private markets in London with Schroders and Illuminate Financial to gather thoughts from some leaders in private markets on their views of the industry’s future in Europe. 

We asked seven private market participants for their views on 2024 trends in private markets.

Hear what they have to say. Listen to short interviews with:

• Spencer Lake, Partner, 13books Capital.
• Toby Bailey, VP of Sales EMEA, Canoe.
• Rezso Szabo, General Partner, Illuminate Financial.
• Dan Kramer, Strategic Advisor, ex-CEO, Jaid AI.
• Tom Davies, Managing Director and President, Forge Europe.
• Levent Altunel, Co-Founder, bunch.
• Jay Wilson, Partner, AlbionVC.

Thanks for coming on AGM unfiltered to share your views and thoughts on the future of private markets.

Show Notes

00:00 Introduction

00:35 Event Overview and Purpose

01:06 Conversation with Spencer Lake, 13books Capital

01:25 Spencer Lake on Banking and FinTech

02:42 Challenges in Private Markets

05:18 Standardization and Technology in Finance

07:34 Insights from nCino's Success

09:44 The Story Behind 13books

10:51 Future of Private Markets

12:55 Conversation with Toby Bailey, Canoe

15:07 Canoe's Approach to Data Management

22:09 Conversation with Reszo Szabo, Illuminate Financial

22:40 Illuminate Financial's Investment Focus

23:51 Generational Transformation in Private Markets

26:36 Challenges in Private Market Liquidity

31:41 Conversation with Dan Kramer, Jaid AI

32:05 Dan Kramer's Career Journey

34:19 Evolution and Transparency in Private Markets

35:37 Jaid's Role in Fund Administration

36:10 The Challenge of Communication in Fund Management

36:49 How Jaid Solves Communication Issues

38:03 The Impact of AI on Post-Investment Processes

39:12 Technology Gaps in Private Markets

40:05 Interview with Tom Davies, Forge Europe: Evolution of Private Markets in Europe

41:23 SPV Nominee Model and Institutional Adoption

42:35 Current Sentiment in the European Secondary Market

43:53 The Changing Skill Set of VCs

45:07 Challenges and Opportunities in Private Market Liquidity

49:55 Interview with Levent Altunel, bunch: Transforming Fund Management

51:21 Unified Data Solutions for Fund Managers

52:53 Future Directions for bunch

57:06 Interview with Jay Wilson, AlbionVC: Evolution of Capital Markets

01:00:35 Electronifying Private Markets

01:03:08 The Role of Data Analytics in Private Markets

01:06:52 Conclusion: The Future of Private Markets