Welcome back to the Alt Goes Mainstream podcast.
Today’s episode dives into one of the most topical trends in the evolution of wealth management platforms and their adoption of private markets.
We are joined by Tom Cohn and Amita Schultes of Cerity Partners, where they discuss the recent combination of their two respective businesses, Cerity Partners, the $100B+ national wealth management firm, and Agility, a leading OCIO business.
Tom and Amita discuss their merger, why there was a need to create customization for wealth investors in private markets, and how bringing on a leading OCIO business takes Cerity Partners’ capabilities to a new level as a solutions provider in private markets.
Tom is the Chief Solutions Officer and a Partner in Cerity Partners’ New York office. He’s a member of the firm’s Leadership Team. He has over ten years of experience in various investment management roles, previously serving as an Investment Analyst at Spero-Smith Investment Advisors, where he was responsible for due diligence and analysis of third-party managers and assisted in global market and asset allocation research.
Amita is a Partner in Cerity Partners’ New York office, managing Cerity Partners’ OCIO client portfolios. She’s a member of the OCIO Investment Committee. Amita brings over 20 years of experience as an investment consultant to bear to the firm. Before joining Cerity Partners, Amita was a Partner and Client Portfolio Manager at Agility, where she served as a voting member of Agility’s Investment Committee. Prior to Agility, she was a Partner, Managing Director, and Senior Consultant at Colonial Consulting, serving as an investment consultant for endowments, foundations, and pension plans. She also served as a Senior Consultant at Ibbotson Associates.
Tom, Amita, and I had a fascinating discussion. We covered:
- The why and the how behind Cerity Partners’ merger with Agility.
- How wealth management platforms can balance customization and scalability.
- Why scale matters in wealth management.
- How alternative asset managers can differentiate when engaging with the wealth channel.
Thanks Tom and Amita for coming on the show to share your views and wisdom on wealth management and private markets.
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.
Show Notes
00:00 Introduction to our Sponsor, Ultimus Fund Solutions
02:05 Guest Introduction: Tom Cohn and Amita Schultes
07:32 Merger Benefits and Synergies
08:19 Client Services and Customization
09:32 OCIO and Wealth Management Integration
10:45 Why Partner Now?
11:40 Cultural Alignment and Expertise
12:38 Amita's Perspective on the Partnership
13:16 Wealth Management as Institutional LPs
14:23 Cerity Partners' Institutional Approach
14:54 Private Markets Evolution
16:25 Operational Excellence in Private Markets
17:35 Research and Manager Selection
20:56 Investment Objectives and Customization
22:27 Institutional and Wealth Client Synergies
28:16 Access and Long-term Relationships
30:06 Customization and Scalability
32:20 Educational Component in Client Investments
32:36 Framework for Custom Portfolios
33:10 Resource Allocation for Customization
33:47 Importance of OCIO Business
34:16 Next Innovation in Investment Solutions
34:38 Turnkey Solutions for Operational Complexities
35:39 Model Solutions and Manager Selection
36:34 Combining OCIO and Wealth Management Practices
37:32 Evolving Structures in Private Markets
37:54 Workflows and Technology in Private Markets
38:39 Client Experience and Operational Expertise
39:37 Defining Private Markets
41:13 Importance of Clear Definitions
41:54 Role and Goals of Private Market Investments
44:15 Partnerships and Mergers at Cerity Partners
47:05 Evaluating Investment Managers
49:06 Trust in General Partner Relationships
51:16 Identifying Manager's Edge
53:24 Training and Methodology in Manager Selection
55:51 Challenges for Managers with Wealth Channel Capital
56:47 Operational Challenges for Smaller Managers
58:06 Future Trends in Alternative Investments
01:01:00 Conclusion and Final Thoughts
Editing and post-production work for this episode was provided by The Podcast Consultant.
