Operational Challenges of Traditional Private Funds

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode was filmed at ING’s HQ in Amsterdam, right after ING held its Private Markets Day. The firm has been actively building out its private markets capabilities to serve its private wealth clients so it was a treat to interview two of the people responsible for running ING’s wealth management and private markets practice.

We sat down with Anneka Treon, ING’s Global Head of Private Banking, Wealth Management & Investments, and Johan Kloeze, Head of Private Banking & Wealth Management Netherlands, to discuss ING’s big ambitions in private markets.

ING, which manages over €260B of invested assets across 5 million clients, has made a major push into private markets. Led by Anneka and Johan, the firm has built out a Private Markets business that has grown AUM in three years since its launch. ING has partnered with established alternative asset managers to create one of the largest evergreen fund platforms in European wealth management.

Anneka, Johan, and I had a fascinating discussion about wealth management, how to bring private markets to advisors and clients, and how to educate the wealth channel about private markets. We covered:

• What Anneka means by “fast money versus slow money.”
• Why it’s important for advisors to bring private markets “to the kitchen table.”
• How to transform savers into investors — and why that matters.
• Why focus on private markets.
• The challenges with building a private markets business.
• Figuring out how to partner with alternative asset managers.
• How and why ING has focused on curation when building its private markets platform.
• The benefits and challenges of evergreen funds.

Thanks Anneka and Johan for sharing your wisdom and expertise at the intersection of private markets and private wealth.

Show Notes
00:00 Message from our Sponsor, Ultimus

01:43 Welcome to the Alt Goes Mainstream Podcast

01:57 Introduction to Johan Kloeze and Anneka Treon

03:19 Guest Welcome and Backgrounds

04:05 Johan's Journey at ING

05:07 Anneka's Background and Ambitions

06:58 The Importance of Private Markets

07:56 Wealth Creation and Preservation

08:25 Building the Private Markets Business

14:55 Educational Approach to Private Markets

16:19 Making Private Markets Human

20:54 Curating the Right Managers

23:02 Slow Money vs Fast Money

24:07 The Bookcase Analogy

24:21 Cash Flow Dynamics

24:27 The Importance of a Stable Financial Foundation

24:53 The Role of Quality Managers in Investment

25:16 Motivations Behind Public vs. Private Markets

26:13 Educating Younger Clients on Slow Money

28:04 The Role of ING in Providing Diverse Investment Options

28:47 Challenges in Building a Private Markets Platform

29:46 The Success of Evergreen Vehicles

31:25 Anneka's Perspective on ING's Private Markets Strategy

32:18 Humanizing Private Markets

32:54 Opportunities in the ELTIF Space

34:24 Educating Clients on Private Markets

36:29 The Future of ING's Private Markets Platform

37:43 Balancing Digital and Human Approaches

38:49 The Importance of Simplifying Investment Concepts

38:57 The Role of Liquidity in Private Markets

39:53 Lessons Learned in Building an Investment Platform

41:38 The Entrepreneurial Spirit of ING's Clients

42:46 The Need for Harmonization in Private Markets

44:36 The Growth Roadmap for ING's Private Markets

45:07 The Future of Private Markets Investments

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

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.