Welcome back to the Alt Goes Mainstream podcast.
Today’s episode features an industry titan who has been on the forefront of the intersection of alts and wealth.
We talk with Stephanie Drescher, Partner, Chief Client and Product Development Officer at Apollo and a member of the firm’s Leadership Team. She oversees the Client and Product Solutions Group (CPS), which includes Apollo’s Global Wealth Management Solutions, Institutional Sales, and Global Product teams. She is also involved with Apollo’s strategic investments in private markets, as a Board Observer at iCapital and a Board Member at Vega.
Stephanie is responsible for leading Apollo’s global wealth buildout, which is one of the firm’s strategic priorities. They’ve invested heavily in educational resources and have built out a specialized team to work with the wealth channel. Apollo has set a goal of achieving $150B from its global wealth business by 2029 and, in 2024, under Stephanie’s leadership the global wealth business exceeded the total capital raised in 2023 from the wealth channel.
Before joining Apollo in 2004, Stephanie was with JP Morgan for 10 years, working primarily in its Alternative Investment Group.
Stephanie and I had a fascinating conversation about how to build and scale a business in the wealth channel. We discussed:
What is safe and what is risky?
How can investors approach asset allocation and portfolio construction?
How working with institutional investors has influenced and helped Stephanie think through how to work with investors in the wealth channel.
The anatomy of building a wealth business.
How critical is brand building when working with the wealth channel?
Thanks Stephanie for coming on the show to share your wisdom and expertise on private markets and work with the wealth channel.
Clip #1: How does Apollo approach private markets?
Clip #2: Privates are no longer a nice to have; they are a need to have.
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
00:00 Introduction and Message from our Sponsor, Ultimus Fund Solutions
01:55 Welcome Back to Alt Goes Mainstream
02:04 Introducing Stephanie Drescher
03:55 Stephanie's Journey at Apollo
04:14 Focus on Institutional Clients
04:43 Strategic Focus on Wealth Channels
05:05 Learning from Different LPs
05:27 Early Days at J.P. Morgan
08:04 Importance of Communication
08:17 Transparency and Client Centric Approach
08:56 Educational Initiatives at Apollo
10:07 Apollo Academy Engagement
10:42 Content Creation Strategy
11:37 Combining Short and Long Form Content
11:43 Direct Client Communication
12:00 Distribution and Marketing
12:26 Client Centric Approach
13:06 Creating a Narrative for Private Markets
13:40 Defining Private Markets
14:34 Public vs. Private Markets
15:50 Changing Definitions in Private Markets
16:18 Impact of 2022 on Public Markets
17:02 Concentration in Public Markets
17:41 Benefits of Private Markets
18:17 Helping Clients Understand Private Markets
18:44 Developing Accessible Solutions
19:45 Client Focused Solutions
19:51 Balancing Client Needs and Market Nuances
20:15 Apollo's Origination Capability
22:12 Athene's Role in Apollo's Strategy
24:26 Tax Efficiency in Private Markets
25:39 Wealth Channel vs. Institutional Investors
25:48 Solving for Tax Challenges
25:53 Listening to Client Needs
27:31 Avoiding K1s and Capital Costs
28:17 Process and Adoption of Private Markets
29:07 Investing in Technology
30:08 Insights from Technology Investments
31:06 Shared Industry Solutions
32:02 Digital Outreach and Thought Leadership
32:38 Apollo's Brand and Public Presence
33:02 B2B2C Relationships
33:10 Building Apollo's Brand
33:50 Communicating Apollo's Value Proposition
34:04 Reaching the End Client
35:39 Media Presence and Brand Awareness
36:59 Tangible Impact of Private Credit
37:35 Evolution of Private Credit
38:14 Role of Asset Backed Credit
38:46 Alternative Asset Managers in Financial Markets
39:18 Partnerships and Convergence
39:48 Discretionary Allocations
40:11 401(k) Business and Retirement Goals
41:18 Focus on Net Return
41:52 Provocative Questions on Liquidity
43:00 Consistency of Messaging
43:26 Innovative Parts of Apollo's Business
43:49 Changing Definitions of Alternatives
45:23 Phases of Adoption in Wealth Channel
47:00 Strategic Focus on Partnerships
52:39 Balancing Scale and Customization
53:26 Personal Reflections and Future Investments
54:48 Conclusion and Farewell
Editing and post-production work for this episode was provided by The Podcast Consultant.
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