Financial Times FundFire Alts Magazine Explores Growing Market for Alts Funds for Advisors
The Financial Times FundFire Alts Magazine’s recent article, “Blackstone Joins Rush of New Alts Funds for Advisors” discusses the rapid product development in active non-traded alternative registered funds. Please click here for the article.
Hank Hakewill – Senior Advisor, Marketing & Communications, contributed to the article.
Among his comments regarding trends in alternatives fund product development, Mr. Hakewill noted that “a lot of the large alternative firms like Blackstone and Apollo know that the institutional marketplace isn’t growing as much – it’s a market share game where you get assets by stealing from someone else. But the individual investor marketplace is still growing.”
Mr. Hakewill added that it can be a long road for fund sponsors hoping to tap into the advisor market to grow assets, especially if the product effort is not well thought out. “We see a lot of watered-down private fund strategies, ‘me-too’ portfolios, funds with a lack of transparency, high fees – a lot of issues,” according to Hakewill.
“The winners will be firms that know the hardest work is at the outset in a market where advisors still need education about adding alts to high-net-worth investor portfolios and help on how to convince their clients these funds are right for them”, Hakewill says.
The article also mentions that XA Investments recently launched a private credit closed-end fund sub-advised by Octagon Credit Investors by developing education materials for advisors on ALTs and CLOs.
“It takes time,” Hakewill says. “You need to have a persuasive story.”