🎙Bernstein Private Wealth Management's Alex Chaloff - how the CIO of a $125B wealth manager navigates private markets

Welcome back to the Alt Goes Mainstream podcast. Today’s episode is with Alex Chaloff, the CIO of a large and sophisticated private wealth management firm that is very active in private markets. Alex is Chief Investment Officer of Bernstein’s $125B+ private wealth management unit within $725B AUM AllianceBernstein. He was previously the Head of Alternative Asset Strategies. Prior to joining Bernstein in 2005, he was a MD for Wilshire Associates, serving on the firm’s investment committee. Prior to that, he worked in fund accounting operations at a global custodian in Boston. Alex and I had a fascinating conversation about: * How to approach private markets asset allocation. * Why he’s doing the job that he always wanted to do. * How to think about portfolio construction. * The importance of patience. * The questions about liquidity. * Why structure matters. Thanks Alex for coming on the show to share your wisdom and views. 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 [email protected]. We thank Ultimus for their support of alts going mainstream. Clip #1: Why infrequent reporting can be a good thing. Clip #2: Stress testing a portfolio. Clip #3: The next generation of investors - they invest very differently. Clip #4: The massive amount of capital sloshing around in private debt is real. Show Notes 00:00 Introduction and Sponsor Message 01:18 Podcast Theme Song 01:35 Welcome to the Podcast 01:59 Introducing Alex Chaloff 03:01 Alex Chaloff's Career Journey 03:49 Transition to Bernstein 04:16 Current Role and Responsibilities 05:26 Investment Strategy and Market Insights 06:58 Active vs Passive Investment 11:35 Middle Market Focus 14:26 Evaluating Fund Managers 18:28 Lessons Learned in Fund Management 20:51 Allocating to Private Markets 22:38 Liquidity and Risk Management 27:01 Current Market Opportunities 31:01 The Perception of Infrequent Reporting 31:38 Private Wealth and Market Fluctuations 32:21 Understanding Liquidity Concerns 32:54 The Future of Private Market Investments 33:38 Challenges in Public Market Benchmarks 34:45 GP and LP Dynamics in Private Markets 36:58 Product Innovation in Private Markets 38:30 Evergreen Structures and Asset Allocation 39:20 Vintage Diversification Strategy 42:07 Lessons from the Current Market Cycle 42:30 Next Generation Investors and Impact Investing 46:13 Double Bottom Line Investing 48:24 Concerns in Private Debt Markets 51:33 Opportunities in Venture Capital 54:36 Favorite Alternative Investments and Future Trends Join over 5,900 thought leaders from top private markets firms like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, 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