Welcome back to the Alt Goes Mainstream podcast.

Today’s podcast takes us to the heart of Mayfair in London, where Blackstone Private Wealth COO Farhad Karim shared the firm’s history and evolution in Europe.

He took a walk down memory lane to discuss the firm’s 25th anniversary in Europe as we walked through Berkeley Square from Blackstone’s current office to their new office at the other end of the square, highlighting how the firm has become the largest owner of commercial real estate in Europe and the importance of building a local presence in the region.

Farhad took on the role of Chief Operating Officer of Blackstone Private Wealth in 2024 after a career at Blackstone that included serving as Chairman and Chief Operating Officer of Blackstone Europe and holding a senior leadership role in the firm’s Real Estate business.

Farhad and I had a fascinating discussion about the evolution of Blackstone’s business in Europe and the firm’s Private Wealth business globally. We covered:

Why it’s important to “meet people where they are at.”

What Farhad learned from his experience running Blackstone Europe.

Building and expanding Blackstone’s Private Wealth business.

How Blackstone will continue to be a pioneer in private wealth.

The next phase of product innovation in the wealth channel.

How an international perspective has shaped Farhad's approach to building the Private Wealth business.

Harmonizing the institutional and private wealth businesses when delivering solutions to LPs.

The human element of working with wealth.

What it means to be “relentless.”

Perspectives on evergreen funds.

The scale of opportunity, information, and access.

Thanks, Farhad, for sharing your wisdom, expertise, and passion about private markets and private wealth.

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus, the full-service fund administrator and transfer agent powering asset managers in private and public markets. As alts go mainstream, you need real expertise to handle complex fund structures, connect with key distribution partners, and handle sophisticated compliance, reporting, and transparency demands.

That’s Ultimus: high-tech, high-touch solutions for over 450 clients and 2,500 funds with $775B in assets under administration. Backed by an expert team of over 1,200 employees, they place client service at the core of their business, helping you navigate complexity during your fund structuring or launch and then supporting you through every stage of growth. Whether you’re already in the market or thinking about entering private wealth, you can trust their team’s deep expertise in retail alternatives to help you reach your goals.

Learn more: ultimusfundsolutions.com or email info@ultimusfundsolutions.com.

We thank Ultimus for their support of alts going mainstream.

Show Notes

00:33 A Message from Ultimus Fund Solutions

02:11 Farhad’s Blackstone Journey

03:14 What Hasn’t Changed at Blackstone

04:14 Parallels Between Real Estate and the Wealth Channel

05:16 Building for Local Markets

08:01 Scaling Advisor and Investor Education

09:12 How Well Advisors Understand Private Markets

11:15 Early Innings of Adoption

12:39 Productization and New Fund Structures

14:20 Simplicity Versus Choice for Investors

15:13 Wealth Consolidation and Institutionalization

17:26 Aligning Wealth and Institutional Capital

19:08 Scale Advantage and Deal Access

19:56 Scale And Global Lens

20:21 Deal Competition And Pricing

20:59 AI advantage across platform

22:36 Risks in private markets

24:37 Explaining Private Markets

26:20 Investing Through Volatility

27:41 Evergreen Vs Drawdown

29:49 Semi liquid is a feature

32:03 How To Use Evergreens

33:32 Owning The Narrative

36:56 Relentless Fiduciary Focus

37:53 Relentless As Culture

39:55 Closing Thoughts

Footnotes

(Timestamp 02:47.8): Largest owners of commercial real estate in Europe.

(Timestamp 33:01.1): Reference to Class I annualized, inception-to-date return from January 2017.

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