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.
Clip #1: What it means to be a “complete partner.”
Clip #2: Bringing all of Goldman Sachs to every touchpoint with a client.
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 Opening Remarks
00:42 Guest Introduction: Kyle Kniffen from Goldman Sachs
02:00 Sponsor Message: Ultimus Fund Solutions
03:20 Welcome to Goldman Sachs
03:23 The Importance of Education in Private Markets
04:08 Kyle's Background and Journey
05:08 Goldman's Heritage in Private Markets
05:45 Client Demand for Thought Partnership
07:13 Consultative Sales Approach
07:41 Lessons from Institutional Clients
13:17 Segmenting the Wealth Channel
13:39 Serving Different Client Segments
15:06 Customization and Differentiation
15:48 Global Coverage and Relationships
20:46 Balancing Goldman and Third-Party Products
28:29 Balancing Closed-End Funds and Alternatives
28:42 Who Should Invest in Alternatives?
29:32 Asset Liability and Liquidity in Investment Strategies
30:27 Technology Innovations in Private Markets
31:00 Exciting Progress in Alternative Strategies
31:47 Enhancing Transparency and Communication
32:21 The Puzzle of Private Market Structures
32:58 Post-Sale Transparency and Investor Experience
34:00 Engaging Clients with Rich Content
34:40 The Importance of Brand and Marketing
36:53 Customization in Wealth Management
38:47 Educating Advisors on Private Markets
39:11 Delivering Novel Insights and Education
40:35 Goldman Sachs Investment University
42:50 Lessons from ETFs and Mutual Funds
43:42 The Role of Performance in Adoption
45:09 Tools for Advisors and Clients
46:08 Understanding Private Markets' Impact on Portfolios
47:38 The Future of Private Market Customization
49:35 Excitement in Private Markets
51:17 Advisor Interests and Innovations
53:09 The Importance of Scale in Private Markets
54:18 The Next Frontier in Private Equity Secondaries
55:34 Conclusion and Final Thoughts
Editing and post-production work for this episode was provided by The Podcast Consultant.
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