ADISA director Greg Mausz interviewed Douglas Blake, Managing Director of Investment Solutions at Kingswood U.S. about the life cycle of an alternative investment.
In the video, Douglas Blake explains that the process involves much more than just the subscription process. It starts with the product sponsor creating the product, then goes through due diligence by broker-dealers and RAAs, the distribution process, custodial solutions, monitoring the investment, and potentially the exit. Communication with financial advisors and investors is crucial throughout the process.
Blake emphasizes the importance of understanding alternative investments as indicators of the economy, as they offer pure access to different sectors. He shares his experience building an alternative investment platform at Kingswood and discusses the changes in the industry over the past five years, including product evolution and regulatory support.
The conversation covers the unique nature of alternative investments compared to stocks and bonds, highlighting their niche and less liquid characteristics. Blake discusses the opportunity to integrate alternative investments more effectively into wealth management by focusing on every stage of the investment cycle.
They also delve into structuring alternative investment offerings, emphasizing communication and education. Blake mentions using resources like AI insight for due diligence and ensuring platform transparency for advisors. He stresses the importance of sponsors creating clear marketing materials to avoid misinterpretations.
The discussion touches on the evolving nature of alternative investments, including the rise of interval funds and tender funds, which offer more liquidity and valuation transparency. Blake also shares best practices for advisors implementing alternatives into client portfolios, emphasizing the maturation of products and increased advisor education. He notes that advisors are now using alternatives for specific strategies and access to unique asset classes.