Welcome back to the Alt Goes Mainstream podcast.
Today’s episode is with a wealth channel veteran who has an innate and developed view of working with wealth.
We sat down in the studio with Adam Bobker. Adam joined Fortress Investment Group in 2022 to build out their wealth business as Managing Director, Global Co-Head of Private Wealth Solutions. He oversees strategy, distribution, marketing, product development, and client management activities across Fortress’ investment programs.
Prior to joining Fortress, Adam was a MD and Head of the Private Wealth Advisory Group at BlackRock, where he spent 22 years. He led a team focusing on private wealth management and institutional consultant channels, as well as business development for BlackRock’s hedge fund, private equity, private credit, and real asset platforms.
Adam and I had a fascinating conversation about how to build a wealth solutions business. We discussed:
The entrepreneurial nature of building a business for the wealth channel.
Lessons that can be learned from other industries.
Why selling into the wealth channel is like being a doctor.
Why understanding the DNA of an asset management firm matters when building a wealth solutions business.
What Adam looks for in a successful distribution professional and when building a distribution team.
How to create scalability and leverage with a distribution team.
How to structure products for the wealth channel.
How to get into model portfolios.
Thanks Adam for coming on the show to share your wisdom and expertise in private markets and wealth management.
Clip #1: What is the downside to a portfolio if someone is not investing in alternatives?
Clip #2: Why did you decide to go to Fortress to build a wealth solutions business?
Clip #3: The Fortress DNA: innovative and pioneering.
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 from our Sponsor, Ultimus Fund Solutions
01:18 Podcast Theme Song
01:56 Welcome and Introduction to our Guest, Adam Bobker
03:35 The Importance of Client Relationships
04:28 Understanding Client Needs
05:10 Evolution of Wealth Management
06:44 Model Portfolios and Custom Solutions
07:15 Education and Product Structure
09:22 Strategic Partnerships in Wealth Management
17:51 Technology in Wealth Management
19:06 Building a Wealth Business at Fortress
20:07 Innovative Strategies at Fortress
20:51 Focus Areas for Fortress
22:04 Evergreen Structures in Wealth Management
22:56 Advisor Psychology and Evergreen Structures
24:57 Suitability of Strategies for Evergreen Funds
26:16 Managing Evergreen Funds
28:24 Opportunities in Real Estate Credit
29:20 Investor Hesitation and Education
29:28 Advantages of Semi-Liquid Funds
30:00 Future of Evergreen Structures
30:13 Industry Flows and Semi-Liquid Funds
30:47 Impact on Alternative Asset Management
30:56 Consolidation and Strategy Expansion
31:24 Focus on Whole Portfolio Delivery
32:00 Building a Diverse Team
32:52 Consultative Sales Approach
33:37 Effective Communication in Wealth Management
34:38 Importance of Brand in Asset Management
35:24 Client Experience and Technology Providers
35:51 In-House vs. Third-Party Service Providers
37:05 Client Experience in Wealth Channel
38:28 Mainstreaming Private Markets
39:22 Commitment to Wealth Community
40:30 Delivering the Best Experience to Wealth Channel
41:17 Transition from Art to Science in Portfolio Construction
42:30 Understanding Investment Exposures
44:20 Transparency and Liquidity in Private Markets
45:23 Product Innovation and Asset Liability Mismatch
48:12 Evergreen vs. Closed-End Funds
49:54 Evolution of Fund of Funds Business
50:52 Wealth Platforms and Private Markets
52:26 Convergence of Institutional and Wealth Channels
53:49 Future of Alternative Asset Management
55:58 Raising Allocation to Alternatives
58:10 Innovative and Pioneering Strategies
Editing and post-production work for this episode was provided by The Podcast Consultant.
Share this post