Matthew J Eager

On the latest iCapital x Alt Goes Mainstream Monthly Alts Pulse, iCapital Chairman & CEO Lawrence Calcano and I welcome a special guest - Hightower Advisors Managing Director, Head of Alternative Investments Robert Picard - to discuss the operational challenges and solutions in private markets. In this episode, Lawrence, Robert, and I discuss: * How wealth platforms like Hightower and infrastructure operating systems like iCapital are creating straight-through-processing solutions across the lifecycle of a private markets investment for the wealth channel. * The importance of bringing alts directly to the advisor’s desktop. * Why improving the experience for advisors in private markets is critical to increasing adoption. * Why it’s important to build across the continuum of needs for different types of high-net-worth investors. * The importance of customization and differentiation with private markets solutions for advisors. * What is the biggest unlock to enabling greater flows of capital into private markets? * What are the implications of opening up the alts superhighway? Thanks Robert for joining us on the show for a fantastic discussion!

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There is a lot of talk about the PE industry not delivering the exits they promised. PitchBook succinctly put it with the title “Behind the J-curve” in its recent in-depth analysis of distribution activity in private market funds. Another side of that story, particularly relevant for secondary buyers like us, is that many private market funds hold their assets at seemingly inflated valuations. TVPI numbers look great for most funds, but they can’t monetize their holdings anywhere near their current NAV, indicating their estimate of “fair market value” is way too optimistic. There is always a market, the price may just not be where you wish it. To a large degree, the reluctance to exit companies results from having them marked too high. Assets were aggressively written up to look good in the short-term, impressing LPs with “paper gains” to raise the next, much bigger fund. #secondaries #privatemarkets

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PE - Hedge Funds Hit by Lack of PE Exits (and one way that PE firms can boost exits) Financial Times: https://lnkd.in/edACss_X FYI - one way to get more PE exits is for the PE fund to have a domain expertise GTM and have deep knowledge on how to increase the Revenue Growth of portfolio companies which boosts cash, profits and margins. --- #pe #privateequity #business

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Interesting article from Douglas Appell in Pensions & Investments about the post-ZIRP, “higher for longer” interest rate environment that boils down to advocating for the pursuit of satisfactory investment outcomes that are relevant to asset owners’ actual spending needs and goals, rather than continuing the historically common practice – and expected future folly – of tethering one’s equity beta to that of an equity benchmark whose performance from today’s elevated levels is widely expected to be sluggish and insufficient to fund minimum liabilities (ie: payout rates, actuarial hurdles, spending goals, etc.).   Quoting the inimitable Ben Phillips, “In that world, the relevant benchmark becomes the client’s required cash flows.”   Fresh perspectives and new ideas are warranted. Satisfactory outcomes not benchmarks.

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🌟 Republic Acquires GoldenChain to Bolster Digital Asset Strategy 📈💼 In a significant move within the investment sphere, Republic has announced its acquisition of GoldenChain, the digital asset arm of GoldenTree Asset Management. Joe Naggar, previously a Partner at GoldenTree, will lead as the Chief Executive Officer and Chief Investment Officer of Republic Digital, marking a strategic shift to deepen Republic's engagement with digital assets. Key Highlights of the Acquisition: 1️⃣ Leadership Transition: Joe Naggar brings his extensive experience in digital assets to Republic, promising to infuse innovative strategies and expertise into Republic Digital’s operations. 2️⃣ Expansion of Capabilities: The integration of GoldenChain’s digital assets management into Republic's framework aims to enhance the firm's overall offerings and market presence in the rapidly evolving digital assets landscape. 3️⃣ Strategic Growth: This acquisition is designed to position Republic at the forefront of digital asset investments, leveraging GoldenChain's established expertise to tap into new market opportunities and drive growth. Implications for the Market: Republic's strategic move to acquire GoldenChain and establish Republic Digital underlines its commitment to expanding its footprint in the digital asset domain. This transition not only promises to bring enriched value to Republic's clients but also sets a precedent for future growth and innovation in the sector. 💬 How will the acquisition of GoldenChain by Republic transform the digital assets landscape? What challenges and opportunities could arise from this integration? 🔄 Engage with us in the conversation about the future of digital assets and investment strategies! 🔗 For further insights into this strategic acquisition, click here to read the full article: https://lnkd.in/emFHJW2J #Republic #GoldenChain #DigitalAssets #Investment #Finance #Innovation

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Second Round Success: Strategies for Sophomore Venture Capital Funds Raising a sophomore venture capital fund presents unique challenges, particularly for first-time fund managers who need to prove their investment thesis and operational capabilities beyond their initial fund. While securing funds from existing investors (re-ups) is common, the endeavor remains daunting due to high market expectations and the inherent pressures of maintaining or exceeding the first fund's performance. For instance, Pentathlon Ventures , focusing on early-stage B2B SaaS startups, has set a target of $55 million for its second fund, aiming to invest in 25 companies. Similarly, DigitalDx Ventures, a woman-led firm emphasizing health technology, seeks to significantly increase its fund size up to $150 million for its sophomore effort, after raising around $24 million in its debut fund. Another example is Crane Venture Partners which successfully raised $140 million for its second fund, focusing on open-source, AI, and developer tools critical for digital infrastructure. These examples illustrate both the ambition and the scale of efforts required to successfully navigate the challenges of raising a sophomore fund. https://lnkd.in/gtfZAQv6 #venturecapital #funding #capitalfunding #scaling #startups #strategy #ventures

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It was great to be back in Boston last week, reconnecting with returning Institute members and meeting new market and investment leaders! We are excited for the events and research areas we have coming up in the next few months! #ocio #investmentsolutions #investmentmanagement #investmentconsulting

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Secondaries and structured liquidity solutions provide creative portfolio management tools for both sponsors and investors as they alleviate the duration mis-match problem particularly exacerbated by the sustained high base rate environment. 

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We're looking forward to sponsoring ALTSNY once again and reconnecting with allocators. CAIA Association, CFA Society New York, and Markets Group have organized a great event. ALTSNY is an educational hotspot for investors seeking the very latest in alternatives asset allocation, investment and practice management, macroeconomic updates, and much more. Secure your spot now at: ALTSNY | MarketsGroup #privatedebt #privatecredit #alternativeinvestments #alts #insurance #reinsurance #ils #altsny #realestate #realestatefinance #cybersecurity #PaulHamman #DebraHaym

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All areas of commerce are benefitting from data analysis, and our industry is no different. And when it comes to hard data, Henry Schwartz is among the very best. Good, punchy interview here fresh from the OIC on many hot topics in the listed options space, including the rise of the "ProTail" customer using options strategically. #Options #OptionsStrategies #Cboe #SPX #VIX #XSP #OIC #0DTE

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If you think portfolio risk management is just about diversification, think again. This article sheds light on some surprising strategies that challenge common perceptions. Here are some thought-provoking takeaways: - Did you know that reducing the number of investments in a portfolio can sometimes actually decrease risks? It's all about strategic selection. - Contrary to popular belief, actively managing risk doesn't necessarily mean more frequent trading. In fact, a hands-off approach can be a smart move. - One of the key points discussed is the importance of understanding the correlation between investments, a factor often overlooked in risk management strategies. - Asymmetric risk and the role it plays in portfolio management is explored, offering a fresh perspective on balancing risk and return. - Ever considered tail risk hedging? This article dives into this lesser-known strategy that can enhance risk management effectiveness. Share your thoughts and feelings on these unconventional risk management strategies. https://lnkd.in/ecgSpH93

We're proud to celebrate Sector Lead, Matt Witheiler's fourth consecutive naming to Forbes’ ‘The Midas List: The World’s Best Venture Capital Investors in 2024'. Kudos Matthew Witheiler - this is testament to your enduring impact on the late-stage VC industry. https://lnkd.in/eBdHwBG4 Wellington Management did not pay a fee to be considered. Winners were selected by a data-driven approach, the Midas List is produced from a combination of public data sources and the submissions of hundreds of investment partners across hundreds of firms each year. This award was announced on June 4, 2024, a submission made in January 2024 and is based on 5 years of trailing data. The award may not be representative of any one client’s experience. The award is not indicative of Wellington Management’s future performance. Past performance is no guarantee of future results.

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It was great fun to be interviewed at #SuperReturn by my friend and advisor Jennifer Prosek of Prosek Partners. Speaking of super returns, at TCW we believe privately structured rescue investing could be an extraordinary opportunity for investors willing to commit long term capital. Regardless of how the macro plays out from here - the die has been cast for rescue - capital structures were put in place with an expectation that rates would stay zero forever. As the math takes over, there are a growing number of good companies with challenged liquidity, and our rescue capability allows us to step up and be a solutions and liquidity provider to those companies while delivering equity-like returns for our clients. Disclosure: https://tcwgrp.com/0qcnuq

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A US appeals court has struck down the overreaching SEC rules that would have burdened private equity and hedge funds with unnecessary requirements. The Fifth Circuit Court of Appeals recognized that the SEC exceeded its authority by mandating detailed quarterly reports and limiting side deals. This unanimous decision is a major victory against Gary Gensler's excessive regulatory agenda, which threatens to stifle growth and innovation in the industry. The court's ruling sends a message that regulators can't bypass Congress to push their ridiculous policies. The SEC's failure to link these new rules to fraud prevention only highlights their lack of justification. It's great to see the court protect our industry from costly and intrusive regulations. This decision reaffirms that the $27 trillion private funds industry, which supports pension funds, universities, and individuals, should not be hindered by unwarranted constraints. While the SEC may consider appealing to the Supreme Court, hopefully, the courts will continue to curb such regulatory overreach.

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Listen to David B. Golub on the latest Fiftyfaces podcast with Aoifinn Devitt, where he speaks about how Golub Capital has built its competitive advantages over the last 30 years and the importance of culture to the Firm’s continued success: https://okt.to/JiTvQr #privatecredit #leadership #podcast

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Thanks to Paula Campbell Roberts from KKR for joining us this month on our How Should I be Positioned podcast. We great conversation about the current state of the US economy, as well as the outlook for inflation, growth, interest rates, and market volatility over the next five years. One thing that we agree on is that the US economy is in a new macro regime. This has implications for strategic asset allocation decisions, which we also discuss. Listen to the podcast for all the details. #shareubs https://lnkd.in/eJasj_EZ  

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The Lincoln Private Market Index, the only index that tracks changes in the enterprise value of U.S. privately held companies, increased by 1.4% during the first quarter of 2024, as the index climbed to yet another record high. View the latest report: https://lnkd.in/gjzeBhgE #LincolnPerspectives

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Retiring entrepreneurs are motivated to sell to private equity firms because PE offers substantial capital infusion, strategic guidance, and a streamlined exit strategy, which helps them unlock their business's full potential and encourage further growth. This approach allows retiring owners to secure a successful transition and maximize business value while preserving their legacy with professional support from firms like SEA.

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