Alto's Eric Satz - retirement assets: the next frontier for private markets?

Welcome back to the Alt Goes Mainstream podcast.Today’s episode dives into an important and growing part of the private markets ecosystem: how investors can access and invest into alternatives through their retirement funds.We have Eric Satz, the Founder & CEO of Alto, a self-directed IRA custodian, with us today to discuss how he’s on a mission to provide everyday Americans with the same investment opportunity long favored by institutional investors.Alto provides custody for a wide array of alternative assets, including private companies, real estate, crypto, loans, and securitized collectibles. Alto has streamlined the process for companies, funds, and SEC-registered investment platforms to include IRA investors in their offerings. They’ve partnered with firms across the alts space, including AngelList, Coinbase, EquityZen, Republic, Masterworks, and others, to enable investors to invest into private markets with their IRA.Eric is a serial entrepreneur and former investment banker. He worked at DLJ / Credit Suisse First Boston before co-founding Currenex (acquired by State Street for $564M), Plumgood Food, and Tennessee Community Ventures. His passion for entrepreneurship led him to serve on the Board of the Tennessee Valley Authority from 2015 to 2018 and he teaches an entrepreneurship class to high school students.On today’s podcast, Eric teaches us all about the merits of a self-directed IRA. We had a fascinating discussion about why and how it makes sense to use an IRA to invest into private markets investments and how he’s taking lessons learned from prior IRA businesses to build Alto.We discussed:Rethinking retirement investing.The evolution of the self-directed IRA market.Alto’s vision: TurboTax for IRAs.Structural challenges with using IRAs for private markets investments.The role of technology with streamlining retirement investing.The evolution in investor awareness of retirement investing.The importance of duration matching.Thanks Eric for coming on the show to share your knowledge and passion for alternatives.Show Notes00:00 Introduction: Going Mainstream00:38 Welcome to Alt Goes Mainstream Podcast00:52 Introducing Eric Satz and Alto01:33 Eric's Background and Entrepreneurial Journey01:57 The Mission of Alto02:01 The TurboTax for IRAs02:05 The Importance of Retirement Accounts in Private Markets02:29 Welcoming Eric to the Podcast02:37 The Evolution of Private Markets and IRAs02:51 The Beginnings of Alto03:13 Challenges in Self-Directed IRAs03:54 The Vision for Self-Directed IRAs04:28 Changing Conventional Wisdom on Retirement Investing05:40 The Demographics of the IRA Industry06:21 The Growth of IRA Accounts06:38 The Allocation to Alternative Assets07:36 Barriers to Private Market Investments in IRAs07:50 Psychological Barriers to Alternative Investments08:35 Structural Challenges in Using IRAs for Private Investments08:53 The Role of Technology in Streamlining Investments09:02 The Launch of Alto with AngelList10:05 The User Journey in Private Market Investments10:43 The Role of Financial Advisors11:10 Educating Investors on Private Markets12:25 The Evolution of Investor Knowledge12:35 The Importance of Tax-Advantaged Investments13:11 The Financial Advisor's Perspective14:05 The Benefits of Illiquidity in Private Markets15:54 The Role of Large Asset Managers16:17 The Branding of Private Markets16:45 The Growth of Athene and Financial Advisors16:57 The Importance of Current Income in Retirement Accounts17:43 The Younger Generation's Investment Behavior18:05 The Impact of Evergreen Fund Structures19:04 The Role of Asset Management Firms20:02 The Future of Private Market Solutions20:15 The Role of Alto in Private Market Investments20:54 The Importance of Infrastructure in Private Markets21:44 The Evolution of Alto's Business Model21:50 The Growing Awareness of Private Markets23:57 The Role of the Alto Marketplace24:35 The Inclusion of Crypto in IRAs25:17 The Challenges of Transitioning Assets to IRAs25:50 The Impact of Friction on Investment Decisions27:46 The Success of Alto's Technology28:35 The Role of Funds in Promoting IRAs29:36 The Future of Private Markets and Wealth Channels31:11 The Role of Financial Advisors in Private Markets31:58 Educating Financial Advisors on IRAs32:13 The Importance of Conferences and Networking47:13 The Future of Private Markets and Retirement Accounts47:32 The Role of Regulations in Private Market Investments50:27 Conclusion: The Potential of Retirement Accounts in Private MarketsEditing and post-production work for this episode was provided by The Podcast Consultant.

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