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As an alternative asset manager, you're not just a traditional investment manager. You're a professional who specializes in non-traditional investments like real estate, private equity, and hedge funds.
These investments can offer higher returns than traditional stocks and bonds, but they also come with higher risks. Alternative asset managers must be skilled at managing risk and finding opportunities in non-traditional markets.
Real estate, for example, can be a lucrative investment, but it requires a deep understanding of local markets and property values. Private equity investments, on the other hand, involve investing in companies that are not publicly traded, requiring a different set of skills and expertise.
Alternative asset managers must be able to navigate these complex investments and find opportunities for growth.
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Getting Started
Alternative asset managers often start by identifying a niche market or investment strategy that sets them apart from traditional asset managers. This could be investing in emerging markets, renewable energy, or private equity.
A key step in getting started is to develop a deep understanding of the chosen niche, including its risks and potential returns. Alternative asset managers should research the market, identify opportunities, and develop a comprehensive investment strategy.
Building a strong team is essential for success in alternative asset management. This team should include experts in finance, law, and other relevant fields. Alternative asset managers should also establish a robust governance structure to ensure accountability and transparency.
Investors typically look for alternative asset managers with a proven track record and a solid investment strategy. Alternative asset managers should also be prepared to provide regular updates and reports to their investors.
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Investment Options
As an alternative asset manager, you have a wide range of investment options to choose from. Private equity investments can provide high returns, but they often come with high risks.
Investing in real assets such as art, wine, or collectibles can be a unique way to diversify your portfolio. These investments are often illiquid, meaning they can't be quickly sold for cash.
Real estate investments can provide a steady stream of income through rental properties, but they also require a significant upfront investment.
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Breadth
We power the alternatives industry at the investment, fund, and manager level through our suite of capital solutions.
Our solutions include direct lending and secondary investments with portfolio companies, providing a vital source of financing for alternative managers.
We also offer GP equity stakes and long-term financing, which can be a game-changer for managers looking to grow their businesses.
The breadth of our solutions is impressive, covering everything from direct lending to GP equity stakes.
We can provide the full financing stack for alternative managers, giving them the flexibility to choose the right solution for their needs.
This includes investments in Private Equity funds with various strategies, as well as diversified investments in mainly Core-type Real Estate funds.
We can also invest in Japan, focusing on Core-type Real Estate funds, which can be a great opportunity for managers looking to tap into the Japanese market.
Our investment scheme for Infrastructure Fund of Funds is designed to be flexible, allowing us to adapt to changing market conditions.
By providing a range of capital solutions, we can help alternative managers achieve their goals and grow their businesses.
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Managers
Investment options are vast, and one key aspect is the type of manager you choose. Alternative asset managers are a great option, offering unique investment opportunities.
GP Minority Equity managers focus on minority stakes in private equity funds, allowing investors to tap into the potential of established funds without taking on the entire risk.
Strategic Equity & Secondaries managers, on the other hand, specialize in buying and selling existing private equity stakes, providing a way to invest in established funds at a lower cost.
By choosing the right manager, you can access a world of investment possibilities and potentially achieve your financial goals.
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Fund Types
Alternative asset managers offer a range of fund types to suit different investment goals.
One common type is the Single Fund product, which invests in a portfolio of alternative assets through a separately managed account or a commingled fund.
This type of fund is designed to provide a streamlined investment experience, with a single product that manages multiple alternative assets.
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Infrastructure
Infrastructure investments can be a key component of a diversified portfolio.
Some infrastructure investments are made through global infrastructure funds, which invest in a variety of projects such as roads, bridges, and public transportation systems.
These funds often have a global investment style, investing in infrastructure projects all over the world.
Investing in infrastructure can provide a stable source of income, as governments often have a vested interest in maintaining and upgrading their infrastructure.
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Fund of Funds
The Fund of Funds product is a way for GPIF to invest in a portfolio of alternative investment funds through a separately managed account. This product is designed to provide a diversified investment strategy.
One example of a Fund of Funds product is the one that invests in Private Equity, Infrastructure, and Real Estate. These are the specific asset classes that this product targets.
The Fund of Funds product can be a good option for investors who want to gain exposure to alternative investments without having to choose individual funds. This product provides a way to pool resources and invest in a variety of alternative investments.
Here are some examples of the asset classes that a Fund of Funds product might target:
Single Fund Product
The Single Fund product is a straightforward investment option. It invests in a portfolio of alternative assets.
You can choose to invest through a separately managed account or a commingled fund.
Our Approach
As an alternative asset manager, you need a partner that can grow with you. We support your growth by offering expertise on fund structures, local servicing requirements, and distribution strategies.
Our integrated technology platform provides a holistic view into your operating model, delivering the data you and your investors need, when you need it. This platform is industry-leading and supports servicing across all asset classes.
We simplify and aggregate workflows and reporting across all liquid and illiquid strategies, streamlining your operating model, eliminating inefficiencies, and reducing risk and cost. Our digital client platform, Infuse, solves for data, documentation, and communication challenges.
Our approach is centered around three key areas: Supporting growthAggregating dataDelivering scale By focusing on these areas, we can help you achieve your goals and provide a unique opportunity to scale your operating model.
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How We Work
As we work with Alternative Asset Managers, we offer a holistic service experience that combines deep product expertise with a practical can-do ethos. Our team is proactive, reacts faster, and provides a single integrated technology platform and service team across all asset classes.
We have a long-term partnership approach, offering expertise on fund structures, local servicing requirements, and distribution strategies as you grow geographically or expand into new asset classes. This means we're with you every step of the way, providing guidance and support when you need it most.
Our industry-leading technology platform provides a holistic view into your operating model, delivering the data you and your investors need, when you need it. This includes access to fund, investor, and investment data, visualization dashboards, and more, all in one place through our digital client platform, Infuse.
We simplify and aggregate workflows and reporting across all liquid and illiquid strategies, streamlining and scaling your operating model, eliminating inefficiencies, and reducing risk and cost.
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Our Latest Insights
At our firm, we're constantly seeking new ways to optimize investor demand and stay ahead of the curve. We've noticed a growing trend among global asset managers to respond to the increasing demand for semi-liquid funds.
This shift is driven by investors seeking more flexibility in their investment options. Currency hedging is being explored as a way to meet this demand, as discussed by Lata Vyas and Mike Carney.
We've also identified a significant opportunity for North American alternative asset managers to target growth in Europe. Investor capital data shows that there's a growing appetite for alternatives among investors in Europe, which presents a promising market for managers.
To tap into this growth, it's essential for managers to understand the ELTIF regime and what it entails. This includes knowing what investors and managers need to know before entering the ELTIF regime.
Here's a brief overview of the key points to consider:
- Global asset managers are responding to the growing demand for semi-liquid funds.
- North American alternative asset managers have a significant opportunity to target growth in Europe.
- Investors and managers need to understand the ELTIF regime before entering it.
Key Aspects
Alternative asset managers are a type of investment firm that focuses on non-traditional assets like private equity, real estate, and commodities.
These managers often have a long-term investment approach, holding onto assets for an average of 5-7 years.
They also tend to have a higher minimum investment requirement, typically ranging from $100,000 to $1 million.
By investing in alternative assets, individuals can potentially reduce their reliance on traditional stock market investments and add diversification to their portfolios.
This can be especially beneficial for high-net-worth individuals or institutional investors looking to manage risk and increase returns.
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Key Features & Benefits
15 years of experience in alternative funds provides a strong foundation for client relationship organisation.
Experts are present in major European countries, offering expertise in regulatory, accounting, and tax aspects specific to each market.
Tools are tailored to investment classes, ensuring a high level of customization.
A range of high-quality, customised and modular services are offered, including solid assistance in structuring management companies and clients' projects.
Administrative management of investor relations and production of reports are also part of the services provided.
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SG Markets, Societe Generale's secure transactional and information web portal, enables detailed management, control, and monitoring of operations 24/7.
Advanced Middle Office offers an outsourcing service for all or part of the middle office, covering management of relations with all fund counterparties and ongoing operations management.
The following services are part of the Advanced Middle Office offering:
- Management of relations with all fund counterparties on the assets & liabilities sides
- Ongoing operations management
- Administrative support
- Controls and reporting
Private Markets players can address their ESG challenges and meet regulatory constraints with the help of a solution that simplifies ESG data collection and centralises data onto a platform.
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Scale
Having a strong permanent capital base is a game-changer for alternative asset managers. This allows us to finance the world's largest managers with confidence.
Our platform's scale gives us the ability to take on bigger deals and provide the certainty of execution that our partners need. This is a key differentiator in the market.
We can provide the confidence that our partners need to succeed across market conditions, thanks to our speed and certainty of execution. This is especially important during times of market volatility.
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Frequently Asked Questions
Who is the largest alternative asset manager?
Blackstone is the world's largest alternative asset manager, with over $1 trillion in assets under management. It leads the industry in managing diverse investments.
What is the difference between traditional and alternative asset managers?
Traditional asset managers focus on liquid investments, while alternative asset managers invest in less liquid assets that often require a longer holding period
What is an example of an alternative asset?
Examples of alternative assets include real estate, commodities, and art, which offer unique investment opportunities beyond traditional stocks and bonds
Is BlackRock an alternative asset manager?
BlackRock is an alternative asset manager that uses advanced technology to track and analyze a vast universe of assets. Explore how we help build stronger portfolios with a deeper understanding of alternative investments.
Sources
- https://www.careerexplorer.com/careers/alternative-asset-manager/how-to-become/
- https://www.securities-services.societegenerale.com/en/solution-finder/alternative-funds-services-private-equity-real-estate-loan-funds/
- https://www.gpif.go.jp/en/investment/manager-registration-alternative-assets/
- https://www.bbh.com/us/en/what-we-do/investor-services/who-we-work-with/alternative-asset-managers.html
- https://www.blueowl.com/alternative-asset-managers
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