Welcome back to the Alt Goes Mainstream podcast.
Today’s episode dives into a groundbreaking partnership that could change the trajectory of how the wealth channel invests into private markets.
We are joined by BlackRock’s Senior Managing Director, Head of the Americas Client Business, Co-Head of U.S. Wealth Advisory (USWA), and a member of the Global Executive Committee for BlackRock Joe DeVico and Head of Product for US Wealth & Head of Alts to Wealth Jon Diorio and Partners Group’s Partner, Co-Head of Private Wealth, Head of the New York Office, Member of the Global Executive Board, Partners Group Rob Collins to discuss their partnership on a private markets model portfolio purpose-built for the wealth channel.
Joe, Jon, and Rob discuss what Rob calls in the podcast the industry’s “iPhone moment.” This model portfolio partnership that brings together BlackRock’s private markets and technology capabilities and Partners Group’s history as a pioneer in the evergreen funds space is a big moment for private markets. The partnership enables the wealth channel to seamlessly access private markets solutions, understand how it fits into a broader asset allocation model, and handles rebalancing in a turnkey fashion.
We had a fascinating discussion about this partnership and why the wealth channel needs turnkey solutions such as model portfolios. We discussed:
Why model portfolios could be the “iPhone moment” for private markets.
The anatomy of the partnership between BlackRock and Partners Group to create private markets model portfolios.
How to balance personalization and customization with standardization of delivery to the wealth channel.
How to create differentiation with private markets product offerings with different product structures.
The mechanics of a private markets model portfolio.
How education plays a role in advisor adoption of private markets products and model portfolios.
Thanks Joe, Jon, and Rob for sharing your wisdom and experience on public and private markets as you help bring private markets into the mainstream.
Clip #1: The iPhone moment - changing the paradigm of private markets.
Clip #2: Why is now the right time?
Clip #3: Why is a comprehensive, turnkey solution needed?
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 Ultimus, our Sponsor
01:56 Welcome to Alt Goes Mainstream Podcast
01:58 Groundbreaking Partnership Announcement
02:25 The Model Portfolio Partnership
03:32 Live from the BlackRock Studio
04:07 BlackRock's Joe DeVico and Jon Diorio, and Partners Group’s Rob Collins
06:25 The Evergreen Wealth Journey
07:33 The iPhone Moment for Private Markets
08:18 Challenges in Private Markets Adoption
08:34 The Importance of Diversified Portfolios
08:54 The Sherwin-Williams Challenge
09:08 The Simple Push Button Solution
09:40 The Uptick in Public Market Models
13:22 The Right Time for Private Markets Solutions
13:48 The Role of Technology and Wrappers
28:04 Evolution of Fixed Income Markets
28:24 Electronification of Private Markets
28:38 Educating Investors on Private Markets
29:33 Importance of Excellent Execution
30:04 Proving the Value of Evergreen Portfolios
30:49 Building the Right Solution
31:15 Client Demand for Private Market Access
31:52 Core Building Blocks of Private Markets
32:21 Simplifying Private Market Investments
32:52 Naming and Structuring Investment Products
33:52 Blurring the Lines Between Public and Private Markets
38:18 Active vs. Passive in Private Markets
40:02 Challenges in Market Adoption
40:33 Scalability and Personalization in Private Markets
41:53 Evergreen Funds: Complex but Essential
43:10 Expanding Access to Alternatives
44:25 Seismic Shift in Private Markets
45:09 Future of Private Market Solutions
47:17 Client Demand Driving Innovation
52:55 Personalization in Investment Portfolios
56:56 The Importance of Time and Simplicity
57:52 Conclusion and Podcast Outro
Editing and post-production work for this episode was provided by The Podcast Consultant.
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