Onur Erzan, Head of Global Private Wealth for Bernstein Private Wealth Management, joined Keith Black, Managing Director of RIA Channel, at the CAIS Summit to discuss how each investor has bespoke preferences and educational needs in private market investments.
Because Bernstein is an integrated investment management and private wealth firm, alternative investments have been a core part of its business for many years. Bernstein owns a private credit platform while investing in best-in-class asset managers in other alternative asset classes. Bernstein works to build bespoke portfolios for clients who may differ in their goals for investment horizon, risk, return, income, and diversification.
While many clients use alternative investments as a source of diversification and to access potential alpha, many are unaware of the other use cases. Alternative investments can also be effectively used for wealth transfer through trust structures or life insurance wrappers. Trusts can be used for tax-efficient wealth transfers as well as constraining the spending rate of the beneficiaries.
While alternative investments are becoming more mainstream, there is still room for greater allocations, which can be driven by advisor and client education. Investors are especially interested in private credit, clean energy, and the disruption in commercial real estate, while expressing a preference for secondary over primary investments in private equity.
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