Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets

Welcome to the 18th episode of the Alts Pulse, a collaboration between iCapital x Alt Goes Mainstream. In the latest episode of the Alts Pulse, a live conversation in studio with Lawrence Calcano, the Chairman & CEO of iCapital, Lawrence and I go global. We discussed his recent trip to Asia to peer into the nuances of the different wealth management markets around the globe.As the leader of a platform with over $300B of assets that is responsible for the majority of individual and advisor-led investment flows into the alts space, Lawrence and iCapital have their finger on the pulse of what’s happening in private markets across the globe.Lawrence and I had a fascinating discussion. We covered:Lawrence’s recent trip to Asia and the pulse on the ground.Asia’s growing interest in private markets.How wealth management market structures differ across the globe and what it means for alternatives distribution.Data-driven personalization for investors.Thanks Lawrence for a great conversation … look forward to the next episode! Show Notes00:00 Introduction to the Latest Episode of the Alts Pulse00:18 Insights from Asia00:40 Comparing Asia and US in Private Markets01:43 Wealth Management Market Structure02:06 iCapital's Focus on Technology02:49 Advisors' Allocation to Alternatives03:13 Evergreen Products and Client Needs03:53 HSBC and iCapital Surveys04:22 Global Adoption of Evergreen Products05:13 Distribution and Education in Private Markets06:15 Model Portfolios and Custom Exposures08:03 Strategic Distribution for GPs08:19 Global Distribution Expansion12:33 Personalization in Wealth Management14:01 Data-Driven Personalization14:45 Private Banks and Alternative Allocations16:37 Thoughts About GPs and Distribution17:24 Balancing Personalization and Scale

It all comes back to the DNA.The firms that know who they are will know who to be.You can learn a lot about an investment firm by listening to what they say.Alt Goes Mainstream’s AGM Originals Series - The DNA: Capturing Culture - is dedicated to capturing the DNA of a firm by listening to what they say.The first season of The DNA stars EQT. In Stockholm, at EQT’s AIM this past summer, I sat down for conversations with nine EQT executives.Each executive came from different parts of the firm — and different parts of the world.Each had fascinating backgrounds and stories about how they ended up in private markets and worked to build EQT.But there was a single throughline threaded throughout all of the discussions: the consistency and frequency that each executive talked about the firm’s mission, vision, culture, and values.That’s why it all comes back to the DNA.Episode 1 features EQT Founder and Chairperson Conni Jonsson. Conni founded EQT Partners AB in 1994. He has been Managing Partner since the company's foundation and as from March 1, 2014, Conni is full time working Chairperson.Prior to founding EQT Partners AB, Conni was employed by the Wallenberg Family Holding Company for seven years as Executive Vice President.Conni Jonsson graduated from the University of Linkoping in 1984, Bachelor of Science with majors in Economic Analysis and Accounting & Finance, and he has participated in the Program for Management Development at the Harvard Business School.Please enjoy this conversation with one of the industry's leaders in Conni Jonsson.You can stream all the episodes on AGM’s YouTube channel at AltGoesMainstreamAGM.Show Notes 00:00 The DNA: Capturing Culture Episode 100:21 EQT's Origins and Global Reach01:38 Conni Jonsson's Background and Journey02:00 Founding EQT: Embracing Uniqueness04:03 Balancing Responsibility and Financial Outcomes05:09 The Wallenberg Family's Influence06:36 Long-Term Thinking in Investing07:20 Operationalizing Long-Term Values08:13 EQT's Distinct Investment Approach10:12 The Importance of Culture in Business11:28 EQT's Focus on Core Competencies12:53 Global Investment Strategies13:20 Engaging with Institutional and Wealth Investors14:15 Educating the Wealth Channel17:10 Diversification and Global Exposure18:19 Investing in Asia: Structural Alpha20:40 Mitigating Political Risks20:47 Future Skills in Private Markets22:51 Aligning Good Business with Good Returns24:38 Conclusion: The Winner Takes It All

David Breach, President and COO of Vista Equity Partners, shares insights from his journey in building a powerhouse in software investing. He discusses the evolution of Vista to over $100B in AUM and the importance of operational diligence in achieving success. Breach highlights opportunities within enterprise software, emphasizing recurring revenue and resilience. He also explores how GenAI enhances software products and workflows, creating real value while advising on the critical need for upskilling employees in an AI-driven world.

Anneka Treon, Global Head of Private Banking at ING, and Johan Kloeze, Head of Private Banking Netherlands, share insights from their extensive experience in private wealth management. They discuss ING's commitment to making private markets accessible and addressing the challenges around traditional funding methods. The duo emphasizes the importance of educating both advisors and clients on private markets, using relatable analogies like 'fast money versus slow money'. They also highlight how technology can enhance investment literacy and the value of curated evergreen funds.

Join Armen Panossian, Co-CEO and Head of Performing Credit at Oaktree, as he shares insights from his extensive career in credit investing. He discusses Oaktree's evolution since its acquisition by Brookfield and highlights how private credit is more than just direct lending. Armen warns about crowding in the credit market while emphasizing alpha opportunities like rescue lending and asset-backed finance. He also offers valuable advice for advisors on navigating private credit strategies, all while maintaining a 'long-term greedy' mindset.

In this discussion, George Stephan, COO of Global Wealth Management Alternatives at Franklin Templeton, shares insights from his extensive experience in wealth solutions and private markets. He outlines the evolution of private market adoption and the unique challenges traditional asset managers face. George emphasizes the importance of cultural fit in acquisitions while highlighting Franklin's innovative approach with evergreen funds. He predicts an increase in demand for digital solutions in private markets, underscoring the significance of strategic partnerships and specialized product offerings.

Bill Crager, a wealth management entrepreneur and co-founder of Envestnet, shares insights on the tech transformation in wealth management. He highlights the evolving role of private markets and how technology can enhance advisor-client experiences. Crager discusses challenges in private market infrastructure and the importance of data aggregation. He emphasizes AI's potential in financial planning while advocating for the enduring need for human advisors. His current venture, iAltA, aims to bridge the gap between private markets and wealth platforms, promising a more integrated future.

Robert F. Smith, the Founder and CEO of Vista Equity Partners, shares his vast experience in enterprise software investing. He highlights how his engineering background informs Vista's approach to evaluating investments. The discussion includes insights on AI's potential, where incumbents might have an advantage, and the importance of data sovereignty. Smith emphasizes the unique risk-return profile of enterprise software and the skills needed in an AI-driven world, offering a glimpse into how AI can transform the industry and elevate wealth management.

Robert Stark, CEO of Nomura Capital Management, brings a wealth of experience from the asset management world. He discusses the rapidly evolving private credit market and the importance of building a standalone asset management business. Stark emphasizes a people-first approach to hiring, the need for diversified private credit solutions, and the significance of strategic partnerships. He also highlights how Nomura's Japanese wealth experience shapes their strategy and anticipates the integration of public and private credit in the future.

Dominick Carlino, PGIM's Global Head of Alternative Investments, brings over 20 years of experience in private markets distribution. In the discussion, he explores the evolution of private markets within wealth management, shedding light on the integration of asset management and insurance. He emphasizes the importance of educating investors about illiquidity and the rising popularity of evergreen funds. Dominick also predicts market consolidation and highlights the need for seamless platforms that combine public and private investment strategies.