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 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.

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Show Notes
00:00 Introduction to our Sponsor, Ultimus Fund Solutions

01:23 Podcast Theme Song

02:01 Introduction to Today's Guest: Adam Bobker

02:40 Building a Wealth Solutions Business

03:40 The Importance of Client Relationships

04:09 Understanding Client Needs

05:10 Evolution of Wealth Management

07:04 The Role of Education in Wealth Management

07:14 Innovative Investment Structures

08:22 Model Portfolios and Custom Solutions

13:05 Strategic Partnerships in Wealth Management

17:30 The Importance of Technology in Wealth Management

18:18 Adam's Transition to Fortress

18:36 Building a Wealth Business at Fortress

19:00 Innovative Strategies at Fortress

20:13 Focus Areas for Fortress Wealth Business

21:22 Evergreen Structures in Wealth Management

22:08 Advisor Psychology and Evergreen Structures

23:57 Suitability of Strategies for Evergreen Funds

25:14 Managing Evergreen Funds

27:12 Opportunities in Real Estate Credit

27:55 Investor Hesitation and Education

28:03 Immediate Exposure with Semi-Liquid Funds

28:33 Are Evergreen Structures Better for Investors?

28:39 The Future of Investment Strategies

28:57 Industry Flows and Semi-Liquid Funds

29:20 Impact on Alternative Asset Management

29:29 Consolidation and Strategy Expansion

29:58 Focus on Whole Portfolio Delivery

30:31 Building a Strong Team

31:17 Consultative Sales Approach

31:56 Effective Communication in Wealth Management

32:58 Importance of Brand in Asset Management

33:38 Client Experience and Technology Providers

34:03 In-House vs. Third-Party Services

36:34 Mainstreaming Private Markets

37:24 Commitment to Wealth Channel

39:11 Transforming Investment Strategies

39:50 Art and Science of Portfolio Construction

42:08 Transparency and Liquidity in Private Markets

43:05 Product Innovation and Asset Liability Mismatch

45:45 Evergreen vs. Closed-End Funds

47:27 Evolution of Fund of Funds Business

48:22 Wealth Platforms and Private Markets

49:51 Convergence of Institutional and Wealth Management

51:10 Future of Alternative Asset Management

51:54 Fee Compression in the Industry

53:07 Raising Allocation to Alternatives

55:14 Innovative and Pioneering Strategies

Editing and post-production work for this episode was provided by The Podcast Consultant.

Fortress Investment Group's Adam Bobker - Combining experience and innovation to build a wealth solutions business

Alt Goes Mainstream: The Latest on Alternative Investments, WealthTech, & Private Markets

Fortress Investment Group's Adam Bobker - Combining experience and innovation to build a wealth solutions business