Podcast
Alt Goes Mainstream
Hosted by Michael Sidgmore · EN
Join the smartest people in the room and subscribe to learn how top investors and allocators are incorporating private markets into the portfolios of tomorrow.
altgoesmainstream.substack.com
altgoesmainstream.substack.com
46episodes
Episodes
Newest firstAll episodes
🎥 Goldman Sachs Petershill's Robert Hamilton Kelly - riding the waves of change in GP stakes
Jul 1, 202501:08:05Tap to summarizeWelcome back to the Alt Goes Mainstream podcast.Today’s conversation dives into the current state of private markets through the lens of one of the leading GP stakes firms in the industry.We sat down with Partner and Global Co-Head of the Petershill Group at Goldman Sachs Robert Hamilton Kelly. Petershill takes minority equity stakes in established and newly-established alternative asset managers. Across its different investment vehicles, Petershill participates in the fee income from over 200 underlying funds from alternative asset management firms that are diversified across asset class, investment strategy, and investment lifecycle.Petershill’s Partner firms have well in excess of $340B in aggregate AUM and they’ve partnered with a number of the top firms and some of the industry's most recognizable names in the middle market and upper end of the market, including Clearlake, Francisco Partners, Permira, Accel-KKR, General Catalyst, Kayne Anderson Real Estate, Kennedy Lewis, and more.Rob and I had a fascinating conversation on GP stakes and the evolution of alternative asset management. We discussed:* The what, why, and how of GP stakes.* The benefits and drawbacks of GP stakes investing for GPs and LPs.* What makes a great GP.* The question of liquidity in GP stakes.* Why Petershill has generally focused on middle-market alternative asset managers.* How private markets will continue to evolve and the growing importance of the wealth channel in the evolution of asset management.Thanks Rob for coming on the show to share your wisdom and expertise in private markets and GP stakes. We hope you enjoy.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.Clip #1: Why is today’s environment “like having sand in the gears?”Clip #2: Why would an LP invest in GP stakes?Clip #3: What is the next evolution in GP stakes?A word from AGM podcast sponsor, Ultimus Fund SolutionsThis 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 Notes01:54 Welcome Back to the Podcast02:06 Introducing Robert Hamilton Kelly03:35 Rob's Boat Racing Experience04:58 Lessons from Boat Racing Applied to Private Markets05:19 Current State of Private Markets05:41 Impact of Policy Changes on Private Markets06:24 Private Markets Focus on Service-Oriented Sectors07:23 Growth of Private Markets07:46 Early Days of Petershill10:30 Goldman's Role in Alternative Asset Management13:43 Insights on Valuing GP Stakes14:53 Data-Driven Investment Strategies16:56 Management Fees and Performance Fees25:31 Strategic Imperatives for Growth31:35 Managerial Skills in Private Markets34:01 Early Stage Investing and Commercial Focus34:48 Challenges and Opportunities in Capital Raising35:49 Industry Consolidation and Firm Growth36:11 The Future of Small and Mid-Market Firms38:35 The Role of GP Stakes in Wealth Channel Access40:52 Goldman's Unique Platform and Its Benefits42:56 The Importance of Capital and Strategic Advice44:58 Common Challenges Faced by GPs46:18 Why LPs Invest in GP Stakes47:45 Income Generation and Capital Growth48:44 Diversification and Allocation Strategies50:39 GP Needs and Market Data51:06 Long-Term Perspectives for LPs52:19 Portfolio Construction and Market Trends54:38 Strategic Growth Areas in Private Markets56:19 Data and Transparency in GP Stakes58:58 Private Markets Growth Projections59:25 Valuation and Return Expectations01:03:12 Liquidity in the GP Stakes Market01:05:12 Structural Changes in Private Markets01:05:57 Venture and Growth Sector Evolution01:06:46 Private Credit Products and Innovation01:07:21 Maturation of Private Markets01:07:44 Conclusion and Final ThoughtsEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 11,800 Substack subscribers & followers who are thought leaders and executives from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Stonepeak, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com
Transcribe →
🎥 Blue Owl Capital's Ivan Zinn - running the long race in private credit
Jun 18, 202501:13:27Tap to summarizeWelcome back to the Alt Goes Mainstream podcast.Today’s episode is with someone who is running the long race — in investing and in running.We sit down with prolific long distance runner, Blue Owl Capital’s Ivan Zinn, who has been a pioneer in alternative credit and asset-based finance.Ivan has had a long career in private credit. He started at DLJ before joining Leonard Green & Partners and Highbridge Capital. He then joined HBK before founding pioneering private credit firm Atalaya Capital Management, where he was also the CIO. Ivan and team grew Atalaya to over $10B in AUM from 2006 to 2024 before being acquired by Blue Owl Capital for $450M (and $800M with earnouts).As part of the transaction, Ivan became Managing Director at Blue Owl and is the Head of Alternative Credit, where the firm is now expanding its footprint due to Atalaya’s expertise. Ivan is as prolific outside of the office as he is in it — he is a long distance runner, running 100 mile races, and was a NCAA All-American tennis player, which comes as no surprise given the discipline, focus and expertise required to excel at the activities he’s done throughout his career in work and sport. He’s also a Board member of the USTA Foundation.Ivan and I had a fascinating conversation about the evolution of private credit and the growth of asset-based finance. We discussed:* How and why ABF has grown within the private credit ecosystem.* ABF’s market structure and a “trip down main street.”* The potential size of the ABF market.* Why moving assets off bank balance sheets can help the financial system.* Why private credit is a data rich asset.* Where ABF fits in a portfolio.* Why consumer credit is potentially misunderstood within private credit.Thanks Ivan for coming on the show to share your wisdom and expertise on private credit and ABF. Good luck to anyone keeping up with you on a long run though!Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.You can also see a recent Q&A with Ivan about private credit and ABF on AGM here.Clip #1: “When your borrowing cost is zero, everything makes sense.”Clip #2: Unpacking the definition of ABF.Clip #3: Why should private credit be part of an investor’s portfolio?A word from AGM podcast sponsor, Ultimus Fund SolutionsThis 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 Notes00:00 Introduction and Message from our Sponsor, Ultimus01:55 Guest Introduction: Ivan Zinn03:51 Parallels Between Running and Business05:40 Founding Atalaya and Private Credit05:52 Early Days of Private Credit06:50 Impact of the GFC on Private Credit07:02 Post-GFC Opportunities08:03 Evolution of Corporate Credit08:32 Asset-Based Finance Growth09:46 FinTech and Private Credit11:29 Importance of Stable Capital17:50 Banking System and Private Credit23:41 Definitions of ABF and ABS28:38 Risk Profiles in Private Credit37:25 Consumer Credit and Perceived Risks39:06 Debunking the Cyclical Perception of Credit Risk39:55 The Utility of Credit Cards During Financial Crises40:17 The Resilience of ABS and Diversified Portfolios40:54 Surviving the GFC: A Model for Credit Analysis41:28 The Importance of Diversification in ABF42:25 Selective Approach to Consumer Credit44:20 Packaging Private Credit for Investors44:25 Atalaya's Journey to Joining Blue Owl45:12 Challenges in Institutional Fundraising and Capital Formation45:59 The Strategic Decision to Join Blue Owl47:32 Integration and Impact at Blue Owl49:08 The Role of DNA and Shared Culture in Credit Firms52:26 The Wealth Channel and Private Credit52:54 Private Credit as a Fixed Income Replacement54:40 Transparency and Market Structure in Private Credit58:15 The Future of Private Credit Education01:00:10 Adoption and Evolution of Asset-Based Finance01:02:52 The Growth of Private Credit Market01:03:13 Private Credit's Journey: A Running Analogy01:04:12 Addressing Challenges in Private Credit01:06:31 Innovation and Scale in Private Credit01:07:21 Vertical Integration in Financing01:08:22 Relentless Forward Progress in Private Credit01:09:00 Reflecting on the Growth of Blue Owl01:09:40 Memorable Investments and Risk-Reward BalanceEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 11,600 thought leaders from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, EQT, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com
Transcribe →
🎥 Lincoln Financial's Jayson Bronchetti - the role of insurance companies in private markets
Jun 5, 202500:54:38Tap to summarizeWelcome 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.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.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 SolutionsThis 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 Notes00:00 Guest Introduction: Jayson Bronchetti from Lincoln Financial01:36 Discussion on Insurance Companies in Private Markets02:22 Message from our Sponsor, Ultimus Fund Solutions04:04 Jayson’s Background and Career Start05:05 Insurance Companies in Private Markets06:33 Asset and Liability Matching08:55 Liquidity and Illiquidity in Investments11:44 Evaluating Private Market Managers13:46 Balancing Scale and Performance15:22 Evolution of Alternative Asset Managers15:32 Strategic Partnerships and Distribution Channels18:10 Leveraging Multi-Manager Platforms20:21 Recent Partnerships with Bain and Partners Group20:55 Value of Distribution Relationships21:39 Symbiotic Relationships in Private Markets23:59 Leveraging General Account for Private Markets24:32 Stewardship and Risk Management24:53 Types of Products and Degrees of Freedom25:14 Creative Strategies and Surplus Capital25:23 Investing in Private Credit and Royalties25:45 Bringing Institutional Strategies to Retail26:04 Strategic Fund Design and Customization26:54 Designing Evergreen Funds27:16 Balancing Liquidity and Investment Efficiency27:37 Seeding Strategies with General Account28:24 One Lincoln Philosophy28:48 Balancing Objectives and Opportunities29:39 Product Innovation in Wealth Channel31:48 The Role of Actuaries in Investment Strategy33:41 Importance of Asset Liability Management34:35 Educating Distribution Teams36:30 Training Wholesalers on Private Markets41:11 Engaging Financial Advisors43:33 Bridging Institutional and Individual Mindsets44:32 Integrating Private Markets in Retirement Products46:31 Product Innovation and Technology49:15 Private Credit and Market Dynamics52:36 Risks in Private Credit53:27 Excitement for Private Markets53:33 Bringing Private Markets to a Broader Audience54:05 Conclusion and Wrap-UpDisclosure from Lincoln FinancialRegistration 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. Join over 11,500 thought leaders from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, EQT, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com
Transcribe →
🎥 Krilogy's John McArthur - charting an RIA's growth path by building out private markets capabilities
Jun 3, 202500:43:27Tap to summarizeWelcome back to the Alt Goes Mainstream podcast.Today’s episode digs into how the CIO of a growing multi-billion dollar wealth management firm thinks about customization and differentiation by building out private markets capabilities.We sat down with John McArthur, Senior Partner and CIO at $3.6B AUM Krilogy. Founded in 2009, Krilogy provides comprehensive financial planning and investment management services to HNW individuals, families, and business owners.Krilogy is charting a growth path — and to chart a growth path, John and his team are thinking about how they can thoughtfully grow their business.With John at the helm as CIO, they have been strategic with their approach to private markets and have increasingly focused on ways that they can create customized and differentiated solutions for their clients.John took 11 years of experience in wealth management and financial planning at A.G. Edwards & Sons and Morgan Stanley Smith Barney to Krilogy, where he joined his former University of Missouri college football teammate, Kent Skornia, to help quarterback Krilogy and their clients to financial success.John is thoughtful in his approach to private markets and how to provide solutions to their clients. We had a fascinating discussion about how wealth management is evolving and how private markets are critical to growing a wealth management practice. We discussed:* How John and team have grown and scaled an independent wealth management firm.* How John approaches private markets — and how that approach has evolved as they work with clients of greater size.* How to balance customization and differentiation with scale.* How can asset managers effectively educate and provide solutions to the wealth channel?* What’s still missing from private markets solutions for the wealth channel?* His views on product innovation, including evergreen funds.* Advice John would give to wealth advisors looking to invest in private markets.Thanks John for coming on the show to share your wisdom and expertise on wealth management and private markets.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.Clip #1: Loving the stress of responsibility.Clip #2: Why create customized solutions for clients?Clip #3: Getting in the game in the wealth space.A word from AGM podcast sponsor, Ultimus Fund SolutionsThis 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 Notes00:00 Introduction and message from our Sponsor, Ultimus Fund Solutions01:56 Welcome to the Podcast02:07 Introducing John McArthur03:52 John's Entry into Wealth Management04:33 The Role of Sports in John's Career05:58 Lessons from Big Wealth Management Firms06:34 The Journey with Krilogy07:23 Challenges and Opportunities in Wealth Management07:49 Growth and Evolution in Wealth Management07:50 Private Markets and Wealth Management08:21 Quality Control in Wealth Management10:01 Organic Growth vs. Acquisitions10:45 Client Service in Wealth Management12:07 Differentiating Wealth Management Offerings13:07 Importance of Private Markets Capabilities14:00 Creating Customized Solutions15:39 Challenges in Educating Advisors16:45 Volatility and Market Changes18:10 Private Markets in a Changing Environment18:19 Building a Diverse Private Fund21:04 Client Understanding of Private Markets23:34 Behavioral Bias in Investing24:18 Long-Term Investing Mindset24:33 Evergreen Funds and Long-Term Returns25:43 Portfolio Construction in Private Markets26:16 Educating Advisors and Clients27:15 Advice for Asset Managers28:17 Effective Education Strategies29:14 Future of Education in Wealth Management29:38 Sourcing and Access in Private Markets30:30 Navigating the Wealth Space for Small Managers31:27 Customization and Differentiation in Wealth Management32:57 Combining Big Brands and Niche Funds34:23 Advice for Wealth Managers37:46 Evergreen Funds as Core Strategy38:34 Model Portfolios in Wealth Management39:41 Favorite Alternative Investments41:47 Contrarian Investment Ideas42:58 Conclusion and Final ThoughtsDisclosure from KrilogyInvestments involve risk and unless otherwise stated, are not guaranteed. Past performance is not a guarantee of future results. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.Editing and post-production work for this episode was provided by The Podcast Consultant. Join over 11,400 thought leaders from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, EQT, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com
Transcribe →
🎥 New Mountain Capital's Steve Klinsky - building a business that builds businesses
May 27, 202500:57:36Tap to summarizeWelcome back to the Alt Goes Mainstream podcast.Today’s episode is with a private equity pioneer who has seen the industry evolve in the forty plus years he’s spent in private markets.We sat down with Steve Klinsky, the Founder and Chief Executive Officer of New Mountain Capital, which he started in 1999, and has grown to over $55B AUM with an investment platform that spans strategies across Private Equity, Credit, and Net Lease Real Estate.Steve was the Co-Founder of the Leverage Buyout Group at Goldman Sachs from 1981-1984, where he helped execute over $3B of transactions for Goldman and its clients. He then joined Forstmann Little and Co. as an Associate Partner and General Partner, helping to oversee seven private equity and debt partnerships totaling over $10B in capital.He has since built New Mountain Capital into a leading alternative asset manager that has charted a growth path. Yet the firm has remained true to its roots and mindset of its “family business background,” which has informed how New Mountain has partnered with both GPs and LPs, and it’s a DNA that is central to their recent rollout of a wealth solutions business.Steve and I had a fascinating discussion about the evolution of private markets and how to build a leading alternative asset manager that helps build businesses. We covered:* How private markets have changed since Steve began in the industry.* What it means to build “great businesses.”* How the mindset of the “family business background” has helped inform investment strategy and deepening LP relationships.* How Steve and New Mountain have navigated scaling the firm while focusing on generating returns for LPs.* How New Mountain has approached launching new strategies.* The why and how behind launching a wealth solutions business.Thanks Steve for coming on the show to share your wisdom and expertise on private markets.Thanks for reading Alt Goes Mainstream! Subscribe for free to receive new posts and support my work.Clip #1: What are the values that underpin building $87B of collective enterprise value?A word from AGM podcast sponsor, Ultimus Fund SolutionsThis 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 Notes00:00 Message from our sponsor, Ultimus Fund Solutions01:55 Welcome to Alt Goes Mainstream01:58 Introducing Steve Klinsky and New Mountain Capital03:41 Steve's Background and Early Days in Private Equity04:00 The Beginnings of Buyouts04:39 Challenges and Opportunities in Early Private Equity06:57 Forstmann Little and Co. Era07:02 Starting New Mountain Capital07:50 New Mountain's Cultural Philosophy08:50 Investment Strategies and Successes10:27 Scaling New Mountain Capital14:25 Mid-Market Focus and Growth15:19 Opportunities in Private Equity19:27 Synergies Across Investment Strategies22:19 The Wealth Channel Focus22:53 Building the New Mountain Brand24:10 Performance and Consistency24:33 New Mountain's Edge27:18 Engaging the Wealth Channel29:14 Future Plans and Products29:28 Expanding Existing Products for Wealth Channel29:42 Industry Evolution and Major Players30:21 Wealth Channel vs. Institutional Channel31:04 Institutional Side of Private Markets31:49 New Institutions and Market Evolution32:54 Challenges in the Wealth Channel34:11 Painful Investment Lessons36:03 Successful Investments and Business Building38:22 Leveraging AI and Technology41:27 Value Creation in Private Equity42:24 Growth and Team Building at New Mountain43:55 Starting New Mountain in 199946:06 Navigating Economic Turbulence48:10 Private vs. Public Markets51:07 Investment Strategies and Price Considerations52:57 Building a Strong Team for Future Success53:43 Global Expansion and Management54:43 Exciting Investment Areas in Private Markets55:46 Focus on Wealth Channel and Secondaries56:32 Industry Evolution and Firm Growth57:01 Closing Thoughts on Building BusinessesEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 11,300 thought leaders from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, EQT, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com
Transcribe →
🎥 Alto's Eric Satz - retirement assets: the next frontier for private markets?
Feb 26, 2025Tap to summarizeWelcome back to the Alt Goes Mainstream podcast.Today’s episode dives into an important and growing part of the private markets ecosystem: how investors can access and invest into alternatives through their retirement funds.We have Eric Satz, the Founder & CEO of Alto, a self-directed IRA custodian, with us today to discuss how he’s on a mission to provide everyday Americans with the same investment opportunity long favored by institutional investors.Alto provides custody for a wide array of alternative assets, including private companies, real estate, crypto, loans, and securitized collectibles. Alto has streamlined the process for companies, funds, and SEC-registered investment platforms to include IRA investors in their offerings. They’ve partnered with firms across the alts space, including AngelList, Coinbase, EquityZen, Republic, Masterworks, and others, to enable investors to invest into private markets with their IRA.Eric is a serial entrepreneur and former investment banker. He worked at DLJ / Credit Suisse First Boston before co-founding Currenex (acquired by State Street for $564M), Plumgood Food, and Tennessee Community Ventures. His passion for entrepreneurship led him to serve on the Board of the Tennessee Valley Authority from 2015 to 2018 and he teaches an entrepreneurship class to high school students.On today’s podcast, Eric teaches us all about the merits of a self-directed IRA. We had a fascinating discussion about why and how it makes sense to use an IRA to invest into private markets investments and how he’s taking lessons learned from prior IRA businesses to build Alto.We discussed:* Rethinking retirement investing.* The evolution of the self-directed IRA market.* Alto’s vision: TurboTax for IRAs.* Structural challenges with using IRAs for private markets investments.* The role of technology with streamlining retirement investing.* The evolution in investor awareness of retirement investing.* The importance of duration matching.Thanks Eric for coming on the show to share your knowledge and passion for alternatives.Clip #1: What's the reasons why more people haven't put private markets investments in their self-directed IRAs?Clip #2: How and when do investors start thinking about using a retirement account to invest in private markets?Clip #3: Unlocking private market access to the wealth channel with a self-directed IRA.Clip #4: Working with the financial advisor.Show Notes00:00 Welcome to the Alt Goes Mainstream Podcast00:51 Diving into Private Markets with Eric Satz01:22 Alto's Mission and Partnerships01:33 Eric Satz's Entrepreneurial Journey01:57 The Merits of Self-Directed IRAs02:01 TurboTax for IRAs02:05 Retirement Accounts and Private Market Investments02:29 Welcoming Eric to the Podcast02:37 The Evolution of Private Markets and IRAs02:52 The Beginnings of Alto03:14 Challenges in Self-Directed IRA Investing05:12 Matching Long-Term Assets with Long-Term Savings05:53 Growth of IRA Accounts06:52 Private Market Investments in IRAs07:53 Barriers to Private Market Investments08:09 Psychological and Structural Challenges09:22 The Role of Technology in IRA Investments09:31 AngelList Partnership and User Experience10:43 Investor Journey in Private Markets11:24 Educating Investors and Advisors14:03 The Evolution of Financial Advisors15:03 The Importance of Illiquidity in Investments18:30 Current Income and Tax Advantages18:58 The Younger Generation and Volatile Investments19:39 Compounding Returns in Private Markets20:22 Asset Management and Diversification21:36 The Role of Infrastructure Solutions25:38 Alto's Marketplace and Crypto IRA27:41 Friction in IRA Investments29:49 Success of Alto's Technology30:56 Partnerships with Major Asset Managers31:43 The Growing Wealth Channel32:41 Direct to Consumer vs. Intermediary Models34:12 Educating Financial Advisors34:42 Boots on the Ground Education35:13 The Role of Financial Advisors in Private Markets36:46 Unlocking Retirement Funds for Private Investments37:45 The Role of Asset Managers in Education39:05 Brokerages and Private Market Investments41:06 Challenges in Asset Review42:17 Future of Private Market Investments43:12 Alto's Vision for the Future44:46 The Role of Defined Contribution Plans45:52 Legitimacy and Participation in Private Markets46:13 Private Equity in Retirement Solutions47:11 Diversification in Public vs. Private Markets48:02 Borrowing Against Private Market Holdings48:44 Regulatory Differences in 401k’s and IRAs51:20 Common Sense in Investment Regulations52:41 Exciting Future Investments53:56 Conclusion and Final ThoughtsEditing and post-production work for this episode was provided by The Podcast Consultant. Join over 9,600 thought leaders from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, EQT, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Hightower, Focus Financial, Cerity Partners, and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com
Transcribe →