🎥 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.

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