🎙HgCapital Trust's Chairman of the Board Jim Strang - a masterclass in private markets

Welcome back to the Alt Goes Mainstream podcast. Today’s episode features a masterclass in private markets from a guest who has seen it all. Jim Strang is a deeply experienced private equity professional who has been part of the industry as a GP, LP, investor, consultant, and now a teacher, board member, and advisor to a number of firms. I’d probably have to spend a good few pages going through everything that Jim has done and is currently doing in private markets. He’s a practitioner and a teacher, an expert and an operator. After an illustrious career that was punctuated as Chairman EMEA of Hamilton Lane, one of the largest LPs in private markets globally, he now serves in a number of board and advisor roles, which include Chairman of the Board at HgCapital Trust plc, Senior Advisor to CVC Capital Partners, Advisor at Bain & Company, and Director at Pictet Alternative Advisors. Jim and I had a fascinating conversation about the evolution of private markets and what the future holds for large and small funds alike, as well as LPs. We discussed: * The step function changes that take private markets from $15T to $30T of AUM. * Why traditional asset managers may struggle to replicate the capabilities of alternative asset managers in private markets. * The importance of partnerships having a clear ambition and alignment if they want to build a scaled platform. * The challenges that managers in the middle face as large platforms and specialist managers are the differentiated firms in the eyes of LPs. * Why GPs need to find innovative solutions to address the needs of different types of investors. * Why building a strong brand is crucial to success in the wealth channel. Thanks Jim for coming on the show to share your wisdom and experience on 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 [email protected]. We thank Ultimus for their support of alts going mainstream. Clip #1: Private markets are like Hotel California. Clip #2: Is it better to be private or public as an alternative asset manager? Clip #3: Is scale a defensible moat? … and “Consulting is about what you know, investing is about what you think” Clip #4: What characterizes the current state of private markets? Clip #5: Are partnerships the right governance model for alignment? Show Notes 00:00 Introduction and Sponsor Message 02:06 Podcast Theme Song 02:44 Guest Introduction: Jim Strang 02:52 Jim Strang's Career Overview 05:35 State of Private Markets: Challenges and Opportunities 08:04 Fundraising Dynamics in Private Equity 11:25 European Private Equity: Evolution and Insights 15:01 Scaling Challenges and Ambitions in Private Equity 25:41 Technology and Innovation in Private Equity 32:47 Challenges in Organizational Analysis 33:56 Psychological Assessments in Investment Decisions 35:48 Effective Questioning Techniques for LPs 36:29 Transparency and Culture in Investment Firms 37:34 Evolution of Asset Management 38:41 Public vs. Private Asset Managers 40:27 Generational Shifts in Private Equity Firms 44:12 Growth and Democratization of Private Markets 48:40 Liquidity Challenges in Private Markets 54:45 Quick Fire Round: Insights on Private Markets 01:00:10 Entertainment Investments: Music Royalties and Sports 01:04:02 Conclusion and Final Thoughts Join over 4,800 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