Founder at Narrative Alpha™ - Helping alternative investment, asset management, and wealth management organizations grow.
The “Democratization of Alternatives” could propel a seismic $10 trillion shift in assets in the coming decade, Investment News suggests. I’ve been engaged in the "Democratization" trend for more than two decades… 1998: created LASSO, one of the first multi-manager alts strategies with daily liquidity 2001: filed and secured a trademark for “Democratization of Hedge Funds” 2003: invited by the SEC, contributed a white paper on the topic for their Hedge Fund Roundtable 2009: launched the LASSO mutual fund, which gathered over one-half $billion AUM The enduring trend of “Democratization” will be the focus of my presentation at Aon's Annual Asset Management Conference this week. We'll delve into the catalysts: -Tax reform: the initial sparks set by the President, Congress, and the IRS -Regulatory reform: how the SEC has reshaped the landscape -Technology: the influence of digital platforms and the tokenization of alts We'll explore “democratized” alts: -The drive for new income sources: channeling capital into private credit -Pursuit of growth: rising interest in private equity secondary funds -Portfolio defense: seeking uncorrelated returns and risk mitigation -Inflation hedging: a pivot to real assets Key risks in this transition will not be overlooked. We will conclude by asking: "Who will emerge as the leading provider in the Democratization of Alternatives?" Understanding this mega-trend is critical for asset managers and advisors to maintain their competitive advantage. Are you prepared for this $10 trillion shift? Tell us in the comments: -who you believe will emerge as the leader of “democratized” alts -how you’re capitalizing on the “democratization” trend Special thanks to John Graham at Aon for the invitation, and kudos to Uri Dallal, Ruya Qadir, Anna (Prather) Digel, and the entire Aon team for orchestrating an excellent event. Thanks to my colleagues at K&L Gates for the introduction: Nicholas Hodge, Michael S. Caccese, Kelly Koltes, Kenneth Holston, and TJ Bright. Link to the Investment News article: https://lnkd.in/edCtyC7P #alternativeinvestments #alternativeassets #alternatives #alts #democratization #fundmanagement
Senior Vice President & Team Leader, CPCU, RPLU
10moExcellent discussion, Rick. Thanks so much for sharing your insights from a couple decades within this “democratization.”