🎙Alt Goes Mainstream EP. 101 - Mercer Investments' Gregg Sommer & CAIS' Neil Blundell - following the fast river of alts
by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Guest post by Michael Sidgmore, Co-founder & Partner at Broadhaven Ventures. | Originally published on Alt Goes Mainstream.
Welcome back to the Alt Goes Mainstream podcast.
On today’s episode, we are joined by Mercer Investments’ US Financial Intermediaries Leader Gregg Sommer and CAIS’ MD and Head of Investments Neil Blundell.
Gregg and Neil bring deep experience and backgrounds in private markets to discuss how alternatives can be further adopted by the wealth channel.
Gregg is Mercer’s US Financial Intermediaries Leader, serving US wealth management and family office clients. He is a member of Mercer’s Wealth Leadership Team, Wealth Management Strategic Research and Investment Committees, and the Investment Policy Committee. He joined Mercer’s Investments business in 2009 and is based in Denver. Gregg began his career at U.S. Trust and over the last 35 years has held several executive positions in the investment industry. He has a comprehensive investment, business, and risk management background and has managed many successful investment teams focused on risk assessment, asset allocation, due diligence, portfolio management, organizational evaluation, and financial analysis across both private and public investment strategies. Gregg served as Chief Financial and Operating Officer of a firm that managed real estate and private equity and debt portfolios and has been a Principal and Portfolio Risk Officer for RCM, a Commodity Trading Advisor. Additionally, he was a founding Partner at Global Trading Partners, a trading firm focused on global market relationships.
Neil brings over 20 years of experience in private markets to CAIS. He recently worked at Invesco as the Global Head of Client Solutions and Alternatives for the Investment Solutions team. He was responsible for developing and managing over $90B in customized multi-asset investment strategies spanning both traditional and alternative solutions and was a member of the team’s executive committee, investment committee, and chair of the alternative investment committee. Prior to Invesco, Neil was at BlackRock for 10+ years, where he was most recently Managing Director and Alternatives Platform Head within the Institutional Client Business.
Gregg, Neil, and I had a fascinating discussion about how the wealth channel can approach alternatives and how they can think about both diligence and customization. We covered:
The case for alternatives.
How advisors currently approach alternatives and how they can think about it differently going forward.
How to think about portfolio construction that includes alternatives.
How alts can help advisors differentiate their practice and attract clients.
Following the fast river in a career and why alternatives are “the fast river.”
The meaning of “structure over strategy.”
The rise in popularity of evergreen funds.
Thanks Gregg and Neil for coming on the show to share your views and experience in private markets. We hope you enjoy.
Show Notes
00:00 Introduction to Sponsor, Ultimus Fund Solutions
01:17 Podcast Opening and Guest Introduction
01:58 Guest Backgrounds and Career Highlights
03:43 Discussion on Wealth Channel and Alternatives
03:51 The Case for Alternatives
07:47 The Evolution of Private Debt
08:23 The Moment It Clicked for Alts
12:08 Institutional vs. Wealth Channel Approaches
13:54 Educating the Wealth Channel
15:47 Evergreen Funds and Wealth Channel
19:29 Generational Wealth Transfer
20:04 Current Market Trends and Private Markets
25:29 Importance of Due Diligence in Alternatives
26:33 Advisor Allocation Trends
26:53 Expected Allocations in the Next Year
27:07 Private Equity and Credit Insights
27:17 Real Estate and Hedge Funds Outlook
27:27 Emerging Infrastructure Strategies
27:47 CAIS Platform Overview
28:17 Transactional Volume Trends
28:36 Registered Funds Growth
29:30 Institutional vs. Wealth Channel Behavior
30:25 Customization in Private Markets
31:22 Technology's Role in Wealth Management
35:52 The Importance of Brand in Investments
39:26 Strategic Partnerships in Wealth Management
39:56 Concerns About Private Markets Growth
43:36 Evaluating Manager's Edge
45:54 Future of Alternative Investments
