🎥 Fortress Investment Group's Adam Bobker - Combining experience and innovation to build a wealth solutions business

Welcome back to the Alt Goes Mainstream podcast. Today’s episode is with a wealth channel veteran who has an innate and developed view of working with wealth. We sat down in the studio with Adam Bobker. Adam joined Fortress Investment Group in 2022 to build out their wealth business as Managing Director, Global Co-Head of Private Wealth Solutions. He oversees strategy, distribution, marketing, product development, and client management activities across Fortress’ investment programs. Prior to joining Fortress, Adam was a MD and Head of the Private Wealth Advisory Group at BlackRock, where he spent 22 years. He led a team focusing on private wealth management and institutional consultant channels, as well as business development for BlackRock’s hedge fund, private equity, private credit, and real asset platforms. Adam and I had a fascinating conversation about how to build a wealth solutions business. We discussed: * The entrepreneurial nature of building a business for the wealth channel. * Lessons that can be learned from other industries. * Why selling into the wealth channel is like being a doctor. * Why understanding the DNA of an asset management firm matters when building a wealth solutions business. * What Adam looks for in a successful distribution professional and when building a distribution team. * How to create scalability and leverage with a distribution team. * How to structure products for the wealth channel. * How to get into model portfolios. Thanks Adam for coming on the show to share your wisdom and expertise in private markets and wealth management. Clip #1: What is the downside to a portfolio if someone is not investing in alternatives? Clip #2: Why did you decide to go to Fortress to build a wealth solutions business? Clip #3: The Fortress DNA: innovative and pioneering. 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. Show Notes 00:00 Introduction from our Sponsor, Ultimus Fund Solutions 01:18 Podcast Theme Song 01:56 Welcome and Introduction to our Guest, Adam Bobker 03:35 The Importance of Client Relationships 04:28 Understanding Client Needs 05:10 Evolution of Wealth Management 06:44 Model Portfolios and Custom Solutions 07:15 Education and Product Structure 09:22 Strategic Partnerships in Wealth Management 17:51 Technology in Wealth Management 19:06 Building a Wealth Business at Fortress 20:07 Innovative Strategies at Fortress 20:51 Focus Areas for Fortress 22:04 Evergreen Structures in Wealth Management 22:56 Advisor Psychology and Evergreen Structures 24:57 Suitability of Strategies for Evergreen Funds 26:16 Managing Evergreen Funds 28:24 Opportunities in Real Estate Credit 29:20 Investor Hesitation and Education 29:28 Advantages of Semi-Liquid Funds 30:00 Future of Evergreen Structures 30:13 Industry Flows and Semi-Liquid Funds 30:47 Impact on Alternative Asset Management 30:56 Consolidation and Strategy Expansion 31:24 Focus on Whole Portfolio Delivery 32:00 Building a Diverse Team 32:52 Consultative Sales Approach 33:37 Effective Communication in Wealth Management 34:38 Importance of Brand in Asset Management 35:24 Client Experience and Technology Providers 35:51 In-House vs. Third-Party Service Providers 37:05 Client Experience in Wealth Channel 38:28 Mainstreaming Private Markets 39:22 Commitment to Wealth Community 40:30 Delivering the Best Experience to Wealth Channel 41:17 Transition from Art to Science in Portfolio Construction 42:30 Understanding Investment Exposures 44:20 Transparency and Liquidity in Private Markets 45:23 Product Innovation and Asset Liability Mismatch 48:12 Evergreen vs. Closed-End Funds 49:54 Evolution of Fund of Funds Business 50:52 Wealth Platforms and Private Markets 52:26 Convergence of Institutional and Wealth Channels 53:49 Future of Alternative Asset Management 55:58 Raising Allocation to Alternatives 58:10 Innovative and Pioneering Strategies Editing and post-production work for this episode was provided by The Podcast Consultant. Join over 11,000 thought leaders from top private markets firms and wealth management like Blackstone, Apollo, Ares, KKR, Carlyle, Blue Owl, CVC, TPG, Brookfield Oaktree, EQT, Vista, Goldman Sachs, J.P. Morgan, BlackRock, Fidelity, iCapital, Franklin Templeton, Nuveen, Hg, Permira, Hightower, Focus Financial, Cerity Partners, 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