Welcome back to the Alt Goes Mainstream podcast.
Today’s episode features a pioneer who has been building the core infrastructure that is making private markets go mainstream.
We talk with Gary Tenkman, a 30-year veteran of the fund administration world who is the CEO of Ultimus Fund Solutions. Ultimus serves over 450 clients and 2,300 funds, representing $725B of assets under administration, all handled by a team of over 1,100 professionals.
Ultimus, which is backed by private equity firm, GTCR and, more recently, Stone Point, is able to help investment managers navigate a growing array of challenges that include elaborate fund structures and evolving compliance requirements. Gary has built a business that combines the best of technology and human experts in fund administration to serve many of the industry’s largest funds. Ultimus has also been a big part of the ability for private markets to innovate with evergreen and interval fund structures since they have the necessary infrastructure and services to help fund managers launch, run, and administer evergreen structures.
Prior to joining Ultimus as CEO, Gary was Head of North American Operations at another large fund service provider, where he was responsible for service delivery for all clients in the region. During his 16 years there, he held leadership positions in alternative investment fund services, European fund services, and US fund services.
Gary and I had fascinating conversation about the evolution of fund administration and how fund administration in private markets has changed with the growing interest in evergreen and interval funds. We discussed:
How fund administration has changed over the 30 years Gary has been in the industry.
Will the evergreen fund industry mirror the growth and evolution of the mutual fund industry?
The gap that Gary and Ultimus saw in private markets fund administration.
Why fund services for evergreen fund structures is very complex and hard to do well.
How technology can provide leverage to fund administration.
Will AI impact fund administration?
Why fund services are a compelling investment category for private equity.
Thanks Gary for coming on the show to share your wisdom and experience and thanks for your support of Alt Goes Mainstream. The work you’re doing at Ultimus is making a big impact on evolving the industry, so it’s an honor to have you partner with AGM. We hope you enjoy.
Show Notes
00:58 Welcome to the Alt Goes Mainstream Podcast
01:07 Introducing Gary Tenkman and Ultimus Fund Solutions
02:00 Gary’s Background and Experience
03:43 Gary’s Journey in Fund Administration
04:31 Public vs. Private Market Fund Administration
04:50 Growth Areas in Fund Administration
07:05 Automation and Standardization in Fund Administration
08:34 Challenges in Data Standardization
11:50 AI’s Role in Fund Administration
12:55 Fund Level vs. Asset Level Data
14:02 Lessons from the Mutual Fund Industry
14:54 Product Innovation in Private Markets
19:51 Guiding Firms in the Evergreen Space
30:06 Founding of Ultimus
30:38 Client-Centric Approach
30:59 Investing in Technology and Growth
31:18 Mergers and Acquisitions
31:44 Scaling in Private Markets
32:44 Challenges and Agility
33:40 Client-Centric Culture
34:18 Winning Awards and Client Retention
34:43 High-Quality Client Service
35:38 Maintaining Culture Through Growth
36:50 Industry Consolidation
37:37 Partnerships and Investments
39:02 Future M&A Opportunities
39:27 Stone Point’s Investment
40:41 Growth in Evergreen Structures
41:33 Convergence of Public and Private Markets
42:11 Hybrid Product Structures
43:57 Regulatory Challenges
45:23 Education in Private Markets
51:02 Private Markets in the Retirement Space
53:33 Excitement for the Future
Editing and post-production work for this episode was provided by The Podcast Consultant.
