Welcome back to the Alt Goes Mainstream podcast.

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

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

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

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

We discussed:

* The evolving role of insurance companies as LPs in private markets.

* Why asset and liability matching is a critical framework to allocating to private markets.

* How the general account of an insurance company creates interesting opportunities for strategic relationships and partnerships with alternative asset managers.

* The benefit of having a business that works with financial advisors and individuals.

* The importance of educating wholesalers about private markets – and why insurance wholesalers might have an advantage in educating advisors and clients about private markets products and strategies.

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

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Clip #1: The dynamics of a partnership — working with Bain Capital and Partners Group.

Clip #2: The secular tailwinds for the growth in private markets.

Clip #3: “Your tomorrow is our priority.”

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 gharris@ultimusfundsolutions.com.

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Guest Introduction: Jayson Bronchetti from Lincoln Financial

01:36 Discussion on Insurance Companies in Private Markets

02:22 Message from our Sponsor, Ultimus Fund Solutions

04:04 Jayson’s Background and Career Start

05:05 Insurance Companies in Private Markets

06:33 Asset and Liability Matching

08:55 Liquidity and Illiquidity in Investments

11:44 Evaluating Private Market Managers

13:46 Balancing Scale and Performance

15:22 Evolution of Alternative Asset Managers

15:32 Strategic Partnerships and Distribution Channels

18:10 Leveraging Multi-Manager Platforms

20:21 Recent Partnerships with Bain and Partners Group

20:55 Value of Distribution Relationships

21:39 Symbiotic Relationships in Private Markets

23:59 Leveraging General Account for Private Markets

24:32 Stewardship and Risk Management

24:53 Types of Products and Degrees of Freedom

25:14 Creative Strategies and Surplus Capital

25:23 Investing in Private Credit and Royalties

25:45 Bringing Institutional Strategies to Retail

26:04 Strategic Fund Design and Customization

26:54 Designing Evergreen Funds

27:16 Balancing Liquidity and Investment Efficiency

27:37 Seeding Strategies with General Account

28:24 One Lincoln Philosophy

28:48 Balancing Objectives and Opportunities

29:39 Product Innovation in Wealth Channel

31:48 The Role of Actuaries in Investment Strategy

33:41 Importance of Asset Liability Management

34:35 Educating Distribution Teams

36:30 Training Wholesalers on Private Markets

41:11 Engaging Financial Advisors

43:33 Bridging Institutional and Individual Mindsets

44:32 Integrating Private Markets in Retirement Products

46:31 Product Innovation and Technology

49:15 Private Credit and Market Dynamics

52:36 Risks in Private Credit

53:27 Excitement for Private Markets

53:33 Bringing Private Markets to a Broader Audience

54:05 Conclusion and Wrap-Up

Disclosure from Lincoln Financial

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

Investing in the funds involves risks, including the risk that a shareholder may lose a part or all of their investment. Limited liquidity will only be provided to shareholders through periodic repurchase offers as described in the funds’ prospectuses, and there is no guarantee that investors will be able to sell all the shares they desire to sell in any repurchase offer conducted. Portfolio diversification does not ensure a profit or protect against a loss.

Lincoln Financial is the marketing name for Lincoln National Corporation, its insurance companies and broker/dealer affiliate Lincoln Financial Distributors, Inc. Affiliates are separately responsible for their own financial and contractual obligations. Bain Capital and Partners Group are not affiliated with Lincoln Financial.

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

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🎥 Lincoln Financial's Jayson Bronchetti - the role of insurance companies in private markets

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