Welcome back to the Alt Goes Mainstream podcast.
Today’s episode dives into private credit and building an asset management business inside of a leading global bank.
We sat down in Nomura’s NYC office with Robert Stark, the CEO of Nomura Capital Management LLC (NCM) and Head of Investment Management in the Americas for the Nomura Group.
Robert brings deep experience in financial services to Nomura. He was previously the Founder & CEO of Alterum Capital Partners LLC, where he focused on building an investment management business at the intersection of private markets and RIAs. Prior to Alterum, he was a Senior Managing Director and member of the Executive Committee at FS Investments, where he was responsible for Corporate Development. He also spent 7 years at JP Morgan across Asset & Wealth Management. He joined JP Morgan from Russell Investments, where he was a member of the Executive Committee. He started his professional career at McKinsey & Company, where he was a Partner serving clients in asset management, investment banking, insurance, and private equity.
Robert brings both a consultant’s analytical perspective and an operator’s practical approach to his work building the credit business at Nomura Capital Management.
Robert and I had a fascinating and wide-ranging discussion about building an asset management business in a fast-growing segment of private markets: private credit. We covered:
The state of the private credit market.
How to build an asset management business.
What it takes to work with the wealth channel.
The entrepreneurial spirit of RIAs.
Open architecture vs closed architecture in private credit.
Keys to success in the evergreen fund space.
Thanks Robert for coming on the show to share your wisdom and expertise on private markets and wealth management.
Clip #1: What is the next phase of private markets?
Clip #2: What did you need to start a credit business?
Clip #3: There must be a way to provide a broader audience with a very diverse way to access private credit.
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 Message from Ultimus, our Sponsor
01:57 Welcome to the Alt Goes Mainstream Podcast
02:06 Guest Introduction: Robert Stark
03:49 Evolution of the Asset Management Industry
04:12 Regulatory Changes and Market Shifts
05:39 Building an Asset Management Business
07:06 Challenges in Asset Management
07:43 Entrepreneurial Journey at Nomura
09:56 Private Credit Market Insights
11:30 Diversification in Private Credit
13:05 Client-Centric Solutions in Private Credit
15:19 Building a Scalable Private Credit Business
16:11 Nomura’s Long-Term Commitment
17:31 Public vs. Private Credit
18:28 Client Needs and Investment Solutions
22:01 Origination in Private Credit
23:16 Open vs. Closed Architecture in Private Credit
24:58 Educating Investors and Advisors
27:51 Early Stages of Private Credit Solutions
28:40 Future of Private Credit and Evergreen Funds
29:14 Keys to Success in the Evergreen Fund Space
31:08 Understanding Investor Needs
31:27 Building a Trusted Brand
31:40 Importance of Nomura’s Support
31:57 Challenges of Starting Up
32:25 Capital and Talent Requirements
33:04 Nomura’s Long-Term Vision
33:52 Nomura’s Wealth Management Legacy
34:30 Expanding in the US Market
35:13 Japanese Market Insights
35:50 Open Architecture Strategy
36:19 Global Client Network
36:58 Focus on RIA Client Segment
38:21 Challenges with RIA Clients
39:18 Entrepreneurial Spirit in RIAs
40:13 Fiduciary Alignment
41:01 RIA Firms as Partners
41:55 Strategic Acquisitions
43:49 Evolving Wealth Management Space
46:50 Team Structure and Coverage
49:03 Long-Term Business Plan
51:05 Investor Education
55:33 Future of Private Markets
58:59 Continuous Innovation
Editing and post-production work for this episode was provided by The Podcast Consultant.
