The challenges facing investment professionals are great; but, for proactive professionals and organizations, the opportunities are even greater.

You know this: what people invest in is changing fast, and how they do it is changing even faster. Just a few years ago, brokerage commissions were X.  No one invested through on-line accounts… because, of course, they didn’t exist. A 1% asset management fee looked small, instead of eating up the majority of a 10-year Treasury’s yield.  Stock pickers ruled. 

Now, everything is different.  The rise of indexation, the ETF explosion, and the slow, persistent bull market in both stocks and bonds has created major challenges for both investment advisors and asset managers.  From here, generating “normal” 7% returns will be exceedingly challenging without assuming risks that many clients do not appreciate.  And the rise of “robo advisors” profoundly threatens traditional advisor revenue models.

But major new opportunities do exist, generated not just by market conditions, but also by regulatory, technology, and product developments. Non-traditional investments, from “liquid alts” to real assets to classic PE and hedged and PE structures, can offer better risk-adjusted, net-of-fees, outcomes to investors, while also generating asset flows for advisors and managers.  High net worth clients are actively seeking advisors who can generate yield and protect wealth while incorporating charitable, social impact, and intergenerational transfer objectives. New distribution models and channels for investment products -- and investment advice -- are proliferating. 

On an organizational level, taking advantage of these changes may mean adjusting growth strategies, striking strategic partnerships and combinations through merger or acquisition, and/or securing capital for infrastructure or personal liquidity needs.  

Going forward, business as usual probably won’t get it done. New winners will emerge.  We’re here to make you one of them.