Jackson Fallon, Managing Director and Head of RIA Key Accounts at Blue Owl, joined Keith Black, Managing Director of RIA Channel, to discuss how advisors can use their knowledge of alternative investments to attract the wealth of the next generation.
Blue Owl is a $235 billion alternative asset manager that is a scaled capital markets solutions provider to the private market ecosystem. Blue Owl offers clients durable and stable income solutions in three verticals: credit, real estate, and GP strategic capital.
Fallon works to grow business with RIA aggregators, TAMPs, OCIOs, and custodian partners. The focus has been on democratizing access to alternative investments while providing individual and institutional investors opportunities on the same terms.
Alternative investments and private markets provide investors a broader opportunity set, as 87% of US companies with revenues over $100 million are privately held. Portfolio construction depends on the advisor’s goals, including diversification, income, and lower volatility.
Advisors and RIAs who have embraced alternatives and can articulate their role in client portfolios can strengthen client relationships and attract new business. Advisors looking to cash in on the wealth transfer need to fully understand private markets and alternative investments.
In the coming decades, $84 trillion will be passed on to the next generation. Three of four investors aged 21-42 surveyed by Bank of America’s Private Bank don’t believe that a portfolio of stocks and bonds will be able to provide above-average returns. This cohort of investors allocates three times more to alternatives than previous generations. Advisors can use their knowledge of and access to alternative investments to build relationships and clientele with next-generation investors.
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