Alternative Allocations Podcast

In this episode of Alternative Allocations, Loren and Tony discuss the growing trend of advisors adopting alternative investments in wealth management. They talk about the primary drivers for this adoption, including diversification, risk mitigation, and the potential for higher returns. They note, however, that the process is fraught with challenges, such as the complexity and time required to understand these products, and limited access through many firms. To help advisors overcome these hurdles, asset managers are investing in education, digital content, and the development of model portfolios and blended public-private products.

Bill and Tony discuss the growth and evolution of alternative investments, address liquidity concerns, and emphasize the importance of education in the latest episode of Alternative Allocations. Bill highlights the industry's efforts to make alts more accessible through new product structures and the potential for including private markets in model portfolios and defined contribution plans.

In this Alternative Allocations podcast episode, Tony and Brian discuss the evolution of investment strategies, emphasizing the need to move beyond traditional 60/40 portfolios by incorporating alternative investments such as private equity, private credit, real assets, and managed futures. They highlight the importance of these alternatives in diversifying portfolios, smoothing out market volatility, and generating higher returns, especially in more challenging investment environments. Brian also stresses the value of clear communication with clients to ensure they understand the purpose and benefits of these complex strategies.

In this special feature episode live from the NYSE, Tony and Jeb engage in a discussion focused on the current state and future outlook of private real estate, focusing on a positive overall outlook as declining valuations made asset values more attractive. They highlighted favorable sectors such as industrial, multifamily, and life sciences, while the office sector faced challenges. Jeb explains how the industrial sector showed resilience due to shifting trade patterns and long-term fundamentals, including e-commerce growth, the persistent housing shortage, and the trend of near-shoring and on-shoring.

In this Alternative Allocations podcast episode, Christine and Tony discuss the evolving landscape of high-net-worth client demands, particularly their growing interest in alternative investments. Christine emphasizes the importance of advisors developing a strategic approach to alternatives, including the need for client education and the role of IWI in providing training and resources. The episode also highlights the challenges and benefits of incorporating alternatives into investment strategies and the rise of specialized teams in wealth management.

In Episode 23 of the Alternative Allocations podcast, the tables are turned, and Tony is interviewed by the producer of the show, Julia Giordano. The episode focuses on Tony's new book, “Private Markets, Building Better Portfolios with Private Equity, Private Credit and Private Real Estate,” which discusses the evolution of the wealth management industry and the growing importance of private markets. Tony shares insights from his career, why he wrote this book, and what else makes him tick.

In this episode of Alternative Allocations, Tony and Aaron discuss the Total Portfolio Approach (TPA), which shifts from traditional strategic asset allocation to a more goal-aligned investment strategy. They explore key aspects of TPA, including governance, culture, a factor-based lens, and competition for capital. The episode highlights both the challenges and opportunities for advisors in adopting TPA, such as the need for a cultural shift and technical expertise, but also the potential for improved client outcomes and more flexible portfolio construction. Practical steps for implementing TPA, such as making incremental changes and reorganizing the investment team, are also discussed.

In Episode 21 of the Alternative Allocations podcast, Jonathan shares DCALTA's mission to enhance diversification and fairness in defined contribution plans through the promotion of alternative investments. He highlights the organization's focus on educating stakeholders and developing industry principles to facilitate the integration of these investments. Tony and Jonathan discuss the importance of liquidity and accurate valuation of illiquid assets to empower participants with better investment choices.

In Episode 20 of the Alternative Allocations podcast, Mark Steffen from Wells Fargo Investment Institute shares insights on the market environment and opportunities in private markets. He provides a positive macro outlook for 2025, predicting U.S. economic growth and a soft landing. Mark shares areas of opportunity, including private equity, private credit, certain hedge fund strategies, infrastructure assets, and secondary investments. He also emphasizes the importance of diversifying portfolios with alternatives, and highlights the increasing accessibility of these strategies to average investors.

This special episode of Alternative Allocations features host Tony Davidow and guests Richard Byrne of Benefit Street Partners, Taylor Robinson of Lexington Partners, and Rick Schaupp of Clarion Partners considering the forthcoming landscape of private markets. The conversation hones in on the role of secondaries in private equity, present and future trends in real estate, and the opportunities in real estate debt. It explores the necessity for liquidity in private markets, the portfolio-strengthening attributes of private real estate, and the potential of real estate credit within the multifamily housing sector. The episode further dissects macroeconomic shifts, such as demographic transformations and advances in e-commerce and healthcare, along with the impact of interest rates on valuations.

In Episode 18 of the Alternative Allocations Podcast, Taylor and Tony discuss the importance and growth of the secondary market in private equity. They talk about slowing exits (M&A and IPO's) and the role of secondaries in providing liquidity to institutions. Taylor highlights the potential benefits of secondary investments, such as diversification and predictable returns, and talks about the evolving market dynamics, including GP-led deals. He also stresses the significance of size and scale in executing transactions and the strategy of acquiring quality assets at reasonable prices to help achieve desired returns.

Scott Welch of Certuity joins Tony in episode 17 of the Alternative Allocations podcast to provide his perspective on allocating to alternative investments. They discuss the growth of evergreen products, the importance of due diligence when selecting a private fund manager, and the evolution of the alternative investment industry. Scott also provides insight into how he thinks about portfolio construction and where private funds and alternatives fit into an overall portfolio.

In episode 16 of the Alternative Allocations podcast, Kate Huntington joins Tony to discuss her years of experience partnering with family offices, endowments and foundations and how she approaches incorporating alternative investments into her clients’ portfolios. They delve into the importance of due diligence and understanding the role of each asset class when working with clients to determine the best strategy for each situation. Whether it’s an individual investor or large family office, often the investment thesis is the same – it’s about enhanced returns, diversification, and having a long-term mindset.

Nick Veronis joins Tony in episode 15 of the Alternative Allocations podcast series to discuss the evolution of alternative investments solely being available to institutions to now becoming more accessible to the wealth channel. They delve into the changes in product structures, the introduction of technology to simplify operations, and the emergence of educational opportunities to help advisors understand the role alts play in client portfolios.