Wealth managers vs. institutions investing in alternatives:
- Institutions used to have exclusive access to alternative investments and looked down on wealth managers for their limited access
- Wealth managers now have more access to alternative investments, thanks to technology platforms and fund-to-funds options
- Companies like GlassFunds are enabling wealth managers to not only access alternatives but also provide a better experience for their clients
How advisors are utilizing GLASfunds:
- Advisors are using GLASfunds as an alternative aggregation platform to scale and allocate alternative allocations across their client base
- GLASfunds helps advisors create fully bespoke portfolios across hedge and private capital strategies
- The platform provides efficiencies by digitizing the subscription process, offering aggregated reporting, and facilitating transfers of existing positions
Investing in alts in a rising-rate environment:
- Allocations to alternatives have decreased slightly due to higher interest rates making cash more attractive
- However, there is still strong growth in the allocation to private capital compared to hedge funds
- Platforms like GLASfunds offer enhanced liquidity options for investors who may need liquidity before the typical holding period of certain alternative investments
How private investments could be improved:
- Technology advancements have made it easier for wealth managers to allocate to alternatives, but challenges remain in managing diversified portfolios across a large client base
- GLASfunds aims to address these challenges by providing operational support and allowing wealth managers to focus on fund selection rather than operational headaches
- The platform also offers opportunities for fee efficiency and net-a-fees returns through seed deals with private credit platforms
GlassFunds' unique features compared to competitors:
- GlassFunds is not a feeder fund but has two main buying entities that allow for fully bespoke portfolios across hedge and private capital strategies
- They offer efficiencies such as lower frictions for allocating to underlying strategies, quicker time-to-market without creating new legal entities, and aggregated reporting including tax reporting
- GlassFunds also provides the ability to transfer existing positions onto their platform, creating efficiencies and allowing for aggregated reporting and tax reporting
Impact of interest rate environment on alternatives:
- Allocations to alternatives have decreased slightly due to higher interest rates making cash more attractive
- Cash is now a viable asset with higher yields, which can compete with alternative investments
- However, there is still strong growth in the allocation to private capital compared to hedge funds
Fee landscape for alternatives:
- Fees in the alternatives space are drifting lower as the industry becomes more competitive
- Platforms like GlassFunds help wealth managers leverage their scale to negotiate institutional-like fee breaks
- Opportunities for fee efficiency exist through seed deals for private credit platforms, offering discounted fees or GP economics for larger commitments
SEC proposals on private markets:
- Increased transparency and better negotiating power for LPs are generally favorable but should strike a balance between transparency and operational burden
- Some proposals may create burdensome complexity or require excessive information that does not provide much use
- Transparency around underlying investments, fees, audits, etc., is beneficial but should consider cost implications and avoid excessive requirements
Integrating GlassFunds with advisors' tech stack:
- GlassFunds has flexibility to integrate with various reporting systems and CRM platforms used by wealth managers
- They focus on providing seamless integration and connectivity with different systems to accommodate the wide range of platforms used by private banks and wealth managers
Size of advisors working with GlassFunds:
- GlassFunds works with a wide range of advisor firms, from smaller specialists managing ultra-high net worth families' alternative allocations to larger private banks handling billions in AUM