Welcome back to the Alt Goes Mainstream podcast.

Today’s episode features a pioneer who has been building the core infrastructure that is making private markets go mainstream.

We talk with Gary Tenkman, a 30-year veteran of the fund administration world who is the CEO of Ultimus Fund Solutions. Ultimus serves over 450 clients and 2,300 funds, representing $725B of assets under administration, all handled by a team of over 1,100 professionals.

Ultimus, which is backed by private equity firm, GTCR and, more recently, Stone Point, is able to help investment managers navigate a growing array of challenges that include elaborate fund structures and evolving compliance requirements. Gary has built a business that combines the best of technology and human experts in fund administration to serve many of the industry’s largest funds. Ultimus has also been a big part of the ability for private markets to innovate with evergreen and interval fund structures since they have the necessary infrastructure and services to help fund managers launch, run, and administer evergreen structures.

Prior to joining Ultimus as CEO, Gary was Head of North American Operations at another large fund service provider, where he was responsible for service delivery for all clients in the region. During his 16 years there, he held leadership positions in alternative investment fund services, European fund services, and US fund services.

Gary and I had fascinating conversation about the evolution of fund administration and how fund administration in private markets has changed with the growing interest in evergreen and interval funds. We discussed:

* How fund administration has changed over the 30 years Gary has been in the industry.

* Will the evergreen fund industry mirror the growth and evolution of the mutual fund industry?

* The gap that Gary and Ultimus saw in private markets fund administration.

* Why fund services for evergreen fund structures is very complex and hard to do well.

* How technology can provide leverage to fund administration.

* Will AI impact fund administration?

* Why fund services are a compelling investment category for private equity.

Thanks Gary for coming on the show to share your wisdom and experience and thanks for your support of Alt Goes Mainstream. The work you’re doing at Ultimus is making a big impact on evolving the industry, so it’s an honor to have you partner with AGM. We hope you enjoy.

Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work - writing and podcasting about the convergence of private markets and private wealth since December 2020.

Show Notes

00:58 Welcome to the Alt Goes Mainstream Podcast

01:07 Introducing Gary Tenkman and Ultimus Fund Solutions

02:00 Gary’s Background and Experience

03:43 Gary’s Journey in Fund Administration

04:31 Public vs. Private Market Fund Administration

04:50 Growth Areas in Fund Administration

07:05 Automation and Standardization in Fund Administration

08:34 Challenges in Data Standardization

11:50 AI’s Role in Fund Administration

12:55 Fund Level vs. Asset Level Data

14:02 Lessons from the Mutual Fund Industry

14:54 Product Innovation in Private Markets

19:51 Guiding Firms in the Evergreen Space

30:06 Founding of Ultimus

30:38 Client-Centric Approach

30:59 Investing in Technology and Growth

31:18 Mergers and Acquisitions

31:44 Scaling in Private Markets

32:44 Challenges and Agility

33:40 Client-Centric Culture

34:18 Winning Awards and Client Retention

34:43 High-Quality Client Service

35:38 Maintaining Culture Through Growth

36:50 Industry Consolidation

37:37 Partnerships and Investments

39:02 Future M&A Opportunities

39:27 Stone Point’s Investment

40:41 Growth in Evergreen Structures

41:33 Convergence of Public and Private Markets

42:11 Hybrid Product Structures

43:57 Regulatory Challenges

45:23 Education in Private Markets

51:02 Private Markets in the Retirement Space

53:33 Excitement for the Future

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

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