iCapital Chairman & CEO Lawrence Calcano - Driving efficiency across the entire value chain to transform private markets

Welcome back to the Alt Goes Mainstream podcast.

I've been having many conversations with GPs and LPs over the past few months — and it feels like we've reached a point in private markets where both sides are trying to figure out how to navigate this space, from a product perspective and a technology perspective.

To better understand these issues, I asked Lawrence Calcano, Chairman & CEO of iCapital, the largest platform in the space and a business that is in the middle of much of the flows of activity between GPs and LPs, to come back on the show to dive deeper into these topics.

The main topic of conversation? The evolution of the different service models that enable GPs to unlock access to private markets for more LPs.

As private markets welcomes more investors to the space, the how becomes as important as the why.

How can investors gain access to private markets in ways that work for them?

How can alternative asset managers better serve those investors?

How can this all be done in a responsible, thoughtful way that sets up both investors and private markets for success in the long-term?

Lawrence and I had a fascinating conversation. We discussed:

• How can operational efficiency across the entire value chain lower fees?
• Where do technological innovations like distributed ledger and AI factor into industry transformation?
• How important is education in driving adoption of alternative investments?
• How model portfolios and customization can transform the investor experience.
• Platform versus point solutions.
• Overestimating and underestimating market trends and market size.
• Why effortless is a myth.

Thanks Lawrence for coming on the Alt Goes Mainstream podcast to share your thoughtful perspectives on the industry and its continued evolution.

Show Notes

00:00 Introduction to Ultimus Fund Solutions

01:18 Welcome to Alt Goes Mainstream and Introduction to Lawrence Calcano

02:26 Navigating Private Markets

03:36 Holistic Solutions for GPs and LPs

03:57 Importance of Education in Alts

04:46 Understanding Alts in Portfolios

06:50 Lowering Fees Across the Chain

07:32 Technology and Tools for Advisors

08:36 Success in the Wealth Channel

10:21 Investment Product Innovations

11:44 Direct Relationships in Private Markets

13:26 Operationalizing Cost Structure Changes

14:21 The Role of AI and Data

14:43 Fee Evolution in Private Markets

15:31 Operationalizing New Workflows

16:06 Long-Term Industry Investments

18:37 Collaboration in the Industry and Education

20:34 Model Portfolios and Customization

23:04 Addressing Liquidity Concerns

24:18 Democratization of Private Markets

25:14 Platform vs. Point Solutions

31:14 The Importance of Scale

38:53 Moving Fast and Moving Slow

40:33 Conclusion and Final Thoughts

A word from AGM podcast sponsor, Ultimus Fund Solutions

This 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 gharris@ultimusfundsolutions.com.

We thank Ultimus for their support of alts going mainstream.