🎥 73 Strings' Yann Magnan - the opportunity for AI to automate private markets

Welcome back to the Alt Goes Mainstream podcast.Today’s episode is with a founder who is building mission-critical valuation and portfolio monitoring software for alternative asset managers.We are joined by Yann Magnan, the Co-Founder and CEO of 73 Strings, to discuss how valuation work and portfolio monitoring is moving from manual to automated and why that’s so important for the industry. 73 Strings has leveraged AI and automation to more seamlessly and cost-effectively extract data, monitor portfolios, and streamline middle-office processes for valuations. 73 Strings works with a number of the industry’s top alternative asset managers and has received investment from Blackstone, Fidelity International Strategic Ventures, and Broadhaven Ventures, amongst others.Yann has brought his experience as a senior member of the Duff & Phelps team, where he was EMEA Market Leader and member of the Global Operating Committee and as a Partner at EY’s Transaction Advisory Services to help bring valuation and portfolio monitoring solutions into the mainstream.Yann and I had a fascinating conversation about how technology innovation is impacting private markets. We discussed:* The challenges with manual valuation services businesses.* How to create uniformity and standardization with private markets fund performance data.* How AI is changing private markets post-investment reporting processes.* Does automation in private markets help big funds or small funds more?* The evolution of post-investment private markets market structure.* The biggest technology innovation still missing from private markets.* Why the growth of the wealth channel and evergreen funds increases the need for more streamlined reporting and valuation solutions.Thanks Yann for coming on the show to share your views and wisdom on private markets.Clip #1: Can there be standardization and uniformity in the valuation process?Clip #2: Will AI be smart enough to do a better job of the qualitative side of valuation work?Clip #3: How does 73 Strings handle different companies reporting metrics in different ways?Clip #4: What does the convergence of the wealth channel and the rise of evergreen structures mean for post-investment processes?A word from AGM podcast sponsor, Ultimus Fund SolutionsThis 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 [email protected] thank Ultimus for their support of alts going mainstream.Show Notes00:00 Introduction and Sponsor Message01:56 Welcome to the Podcast02:05 Introducing Yann Magnan and 73 Strings03:56 Yann's Background and Experience04:05 The Genesis of 73 Strings04:35 Challenges in Manual Valuation05:27 The Role of AI in Valuation09:43 The Importance of Human Judgment11:42 Accountability in Valuation Reporting13:03 Collaboration with Service Providers14:21 Handling Diverse Data Sources15:08 Automation and Standardization16:24 Impact of Automation on Human Processes17:44 Growth of the Wealth Channel and Evergreen Funds18:44 Acceleration of Valuation Needs19:34 Retail Investors and Private Capital20:00 Frequency and Robustness of Valuation20:28 Industry Readiness for Evergreen Structures20:51 Technological Implications of Increased Frequency21:13 Daily Valuation in Public and Private Assets21:32 Technology Infrastructure in Asset Management21:39 Industry Resilience and Rapid Adaptation21:45 Forefront Firms and Their Strategies22:01 Blackstone's Partnership with 73 Strings22:45 Challenges in Valuation Processes23:50 Data Control and Standardization24:11 Extending Valuation Methodologies to Other Asset Classes25:14 Building a Versatile Valuation Platform26:18 Private Equity vs. Private Credit Valuations26:58 Atomic Unit of Value in Valuations28:40 Data Sharing Across Business Units31:29 Automation Benefits for Large and Small Firms32:38 Pricing Models and Value Creation33:02 Building Technology for Large Firms35:43 Trust and Experience in Client Relationships36:34 Strategic Investors and Their Value39:01 Industry Participation and Standardization41:04 Maturity and Cost of Technology42:14 Future of Data in Private Markets43:30 Convergence of Private and Public Markets45:17 Retail Investors in Private CapitalJoin over 8,400 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, CVC, TPG, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen and more. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit altgoesmainstream.substack.com