401(k) Potential for Private Markets

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.

Show Notes
01:01 Introduction to the Alt Goes Mainstream Podcast

01:10 Gary Tenkman: A Pioneer in Fund Administration

01:17 Ultimus Fund Solutions: An Overview

01:50 Innovations in Private Markets

02:02 Gary's Career Journey

02:20 The Evolution of Fund Administration

02:38 Challenges in Fund Services for Evergreen Structures

02:46 The Role of Technology in Fund Administration

06:58 Automation and Data Standardization

11:15 AI in Fund Administration

12:09 Fund Level vs. Asset Level Data

13:16 Lessons from the Mutual Fund Industry

13:58 Product Innovation in Private Markets

18:30 Navigating the Evergreen Space

23:20 Distribution Strategies for Private Markets

25:35 The Importance of Service Providers

26:50 The Evolution of Ultimus Fund Solutions

27:19 Evolution of Ultimus: The Early Days

28:02 Client-Centric Focus: The Key to Success

28:16 Investing in Technology and Growth

28:35 Mergers and Acquisitions: Building Scale

28:58 Private Side Expansion and Momentum

29:40 Challenges and Solutions in Private Markets

30:40 Client-Centric Culture: What It Means

31:34 Delivering High-Quality Client Service

32:28 Maintaining Culture Amidst Growth

33:27 Industry Consolidation: A Historical Perspective

34:09 New Partnerships and Investments

35:26 Future M&A Opportunities

35:43 Stone Point's Investment in Ultimus

36:34 Growth in Private Funds and Evergreen Structures

37:29 Convergence of Public and Private Markets

38:05 Hybrid Product Structures: Opportunities and Challenges

39:45 Regulatory Challenges in Retail Alts

40:58 Education and Adoption in Private Markets

45:54 401k and Retirement Space: Unlocking Potential

48:04 Exciting Trends in Private Markets

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