Alternative Investing: Alts For All - [Business Breakdowns, EP.234]

In this episode of Business Breakdowns, Matt Reustle interviews Josh Clarkson, Managing Director at ProSec Partners, about the increasing accessibility of alternative investments to retail investors. They discuss the potential $4 trillion AUM growth opportunity for alternative asset managers if individual investors increase their allocation to alternatives, aiming to bridge the retirement savings shortfall. Clarkson addresses concerns about recent market headlines, emphasizing the importance of distinguishing between liquid and private markets. The conversation covers regulatory changes, the evolution of retail investment products, and the role of investor education. They explore various investment vehicles, including credit, infrastructure, real estate, and private equity, and highlight the importance of brand and a strong credit franchise for alternative asset managers. The discussion also touches on fee structures and the need for net-of-fee performance considerations, concluding that while larger firms have an advantage, investors who gain access to better investment products will ultimately benefit.