Goldman Sachs' Kyle Kniffen - standing on the shoulders of Goldman Sachs to be "a complete partner" for the wealth channel

Welcome back to the Alt Goes Mainstream podcast.

Today’s episode is with someone responsible for growing the footprint of one of the largest private markets businesses in the industry.

We sat down at Goldman Sachs’ 200 West office with Kyle Kniffen to discuss the evolution of the firm’s work with the wealth channel and how an intensified focus on private markets is helping to drive the firm’s strategic imperatives in asset and wealth management.

Kyle is a Managing Director, Global Head of Alternatives, Third Party Wealth, at Goldman Sachs, which has over $500B of AUM in private markets. He’s responsible for the distribution of both Goldman Sachs private markets products and third party products to the wealth channel.

Kyle and I had a fascinating conversation about the most pressing trends and questions in private markets. We discussed:

• How lessons learned from traditional asset management have helped Goldman with its private markets business.
• The benefits of a broad platform when it comes to helping the wealth channel navigate private markets.
• Why advisors should integrate private markets solutions.
• How to build a wealth channel business.
• How to think about evergreen funds versus closed end funds.
• The next innovation in productization.
• Why co-investments are becoming more popular with the wealth channel.
• Are evergreen funds here to stay?

Thanks Kyle for coming on the show to share your wisdom and expertise.

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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.

Show Notes
00:42 Introduction to the Podcast and our Guest

02:00 A message from our Sponsor, Ultimus Fund Solutions

04:06 Kyle’s Background and Journey

04:18 Wealth Channel Strategies and Insights

05:06 Goldman's Heritage in Private Markets

05:28 Client Demand for Thought Partnership

06:13 Public Markets Perspective

07:07 Consultative Sales Approach

07:21 Lessons from Institutional Segment

09:05 Quality of Investment Flow

10:51 Serving the Third Party Wealth Channel

12:53 Client Segmentation and Customization

15:16 Global Reach and Relationship Building

22:43 Product Innovation and Future Trends

27:12 Balancing Client Needs in Alternative Investments

27:47 Who Should Invest in Alternatives?

28:36 Asset Liability and Liquidity in Investment Strategies

29:28 Technology Innovations in Private Markets

30:00 Exciting Progress in Alternative Strategies

30:46 Transparency and Communication in Investments

31:14 The Puzzle of Private Market Structures

31:54 Post-Sale Transparency and Investor Experience

33:27 Engaging Clients Through Brand and Marketing

35:37 Customization in Wealth Management

37:24 Educating Advisors on Private Markets

37:47 Delivering Unique Insights and Education

39:01 Goldman Sachs Investment University

41:09 Lessons from ETFs and Mutual Funds

41:54 The Importance of Performance and Education

43:11 Tools for Advisors and Real-Life Applications

44:06 Understanding Private Markets' Impact on Portfolios

47:19 Excitement Around Private Equity Secondaries

49:02 Advisors' Interests in Tax-Advantaged Strategies

49:47 The Role of Liquidity in Private Markets

50:35 The Importance of Scale in Private Markets

51:38 Future of Private Equity Secondaries

52:14 The Permanency of Secondary Markets

52:52 Conclusion: The Benefits of a Global Platform

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