Show notes
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.A word from AGM podcast sponsor, Ultimus Fund SolutionsThis 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 [email protected] thank Ultimus for their support of alts going mainstream.Subscribe to Alt Goes Mainstream to receive the weekly newsletter every Sunday and all of AGM’s podcasts.Show Notes00:00 Introduction to our Sponsor, Ultimus Fund Solutions01:23 Podcast Theme Song02:01 Introduction to Today's Guest: Adam Bobker02:40 Building a Wealth Solutions Business03:40 The Importance of Client Relationships04:09 Understanding Client Needs05:10 Evolution of Wealth Management07:04 The Role of Education in Wealth Management07:14 Innovative Investment Structures08:22 Model Portfolios and Custom Solutions13:05 Strategic Partnerships in Wealth Management17:30 The Importance of Technology in Wealth Management18:18 Adam's Transition to Fortress18:36 Building a Wealth Business at Fortress19:00 Innovative Strategies at Fortress20:13 Focus Areas for Fortress Wealth Business21:22 Evergreen Structures in Wealth Management22:08 Advisor Psychology and Evergreen Structures23:57 Suitability of Strategies for Evergreen Funds25:14 Managing Evergreen Funds27:12 Opportunities in Real Estate Credit27:55 Investor Hesitation and Education28:03 Immediate Exposure with Semi-Liquid Funds28:33 Are Evergreen Structures Better for Investors?28:39 The Future of Investment Strategies28:57 Industry Flows and Semi-Liquid Funds29:20 Impact on Alternative Asset Management29:29 Consolidation and Strategy Expansion29:58 Focus on Whole Portfolio Delivery30:31 Building a Strong Team31:17 Consultative Sales Approach31:56 Effective Communication in Wealth Management32:58 Importance of Brand in Asset Management33:38 Client Experience and Technology Providers34:03 In-House vs. Third-Party Services36:34 Mainstreaming Private Markets37:24 Commitment to Wealth Channel39:11 Transforming Investment Strategies39:50 Art and Science of Portfolio Construction42:08 Transparency and Liquidity in Private Markets43:05 Product Innovation and Asset Liability Mismatch45:45 Evergreen vs. Closed-End Funds47:27 Evolution of Fund of Funds Business48:22 Wealth Platforms and Private Markets49:51 Convergence of Institutional and Wealth Management51:10 Future of Alternative Asset Management51:54 Fee Compression in the Industry53:07 Raising Allocation to Alternatives55:14 Innovative and Pioneering Strategies Editing and post-production work for this episode was provided by The Podcast Consultant.